The Year 1 financial statements of the Brazilian subsidiary of Artemis Corporation (a Canadian company) revealed the following:Brazilian reals (BRL)Beginning inventory100,000Purchases500,000Ending inventory150,000Cost of goods sold450,000Canadian dollar (C$) exchange rates for 1 BRL are as follows:January 1, Year 1C$0.45Average, Year 10.42December 31, Year 10.38The beginning inventory was acquired in the last quarter of the previous year, when the exchange rate was C$0.50 = BRL 1; ending inventory was acquired in the last quarter of the current year, when the exchange rate was C$0.40 = BRL 1.Question: Assuming that the temporal method is the appropriate method of translation, determine the amounts at which the Brazilian subsidiary’s ending inventory and cost of goods sold should be included in Artemis’s Year 1 consolidated financial statements.
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