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Kevin lives in Calgary and wants to buy a 2016 Corvette. The best price he can find for a low-mileage model in Alberta is $52,000. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$34,500. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$587 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$850 in travel and accommodation costs while driving the vehicle back to Calgary. Table 4.2 Currency Cross Rates (Noon ET, December 17, 2021) Canadian dollar (C$) U.S. dollar (US$) Euro (€) Japanese yen (¥) British pound (£) Indian rupee (*) Australian dollar (A$) Per C$ Per US$ 1.2830 Per € 1.4468 0.7794 1.1276 0.6912 0.8868 88.4975 113.5600 0.5874 0.7538 59.4290 76.0908 1.0908 1.3988 Per 0.0113 0.0088 0.0078 128.0728 0.8499 0.0066 86.0488 0.6677 101.600 1.5782 0.0123 1.8568 0.0183 Per £ Per Per A$ 1.7024 0.0168 0.9168 1.3266 0.0131 0.7149 1.1766 0.0116 0.6336 151.5152 1.4990 81.3008 0.0099 0.5386 54.6365 How much will he save (in C$) by buying the Corvette in California? (Do not round your intermediate calculations. Round your answer to two decimal places.) Savings C$

Kevin lives in Calgary and wants to buy a 2016 Corvette. The best price he can find for a low-mileage model in Alberta is $52,000. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$34,500. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$587 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$850 in travel and accommodation costs while driving the vehicle back to Calgary. Table 4.2 Currency Cross Rates (Noon ET, December 17, 2021) Canadian dollar (C$) U.S. dollar (US$) Euro (€) Japanese yen (¥) British pound (£) Indian rupee (*) Australian dollar (A$) Per C$ Per US$ 1.2830 Per € 1.4468 0.7794 1.1276 0.6912 0.8868 88.4975 113.5600 0.5874 0.7538 59.4290 76.0908 1.0908 1.3988 Per 0.0113 0.0088 0.0078 128.0728 0.8499 0.0066 86.0488 0.6677 101.600 1.5782 0.0123 1.8568 0.0183 Per £ Per Per A$ 1.7024 0.0168 0.9168 1.3266 0.0131 0.7149 1.1766 0.0116 0.6336 151.5152 1.4990 81.3008 0.0099 0.5386 54.6365 How much will he save (in C$) by buying the Corvette in California? (Do not round your intermediate calculations. Round your answer to two decimal places.) Savings C$

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kevin lives in Calgary and wants to buy a 2016 Corvette. The best price he can find for a low-mileage model in Alberta is $52,000. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$34,500. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$587 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$850 in travel and accommodation costs while driving the vehicle back to Calgary. Table 4.2 Currency Cross Rates (Noon ET, December 17, 2021) Canadian dollar (C$) U.S. dollar (US$) Euro (€) Japanese yen (¥) British pound (£) Indian rupee (*) Australian dollar (A$) Per C$ Per US$ 1.2830 Per € 1.4468 0.7794 1.1276 0.6912 0.8868 88.4975 113.5600 0.5874 0.7538 59.4290 76.0908 1.0908 1.3988 Per 0.0113 0.0088 0.0078 128.0728 0.8499 0.0066 86.0488 0.6677 101.600 1.5782 0.0123 1.8568 0.0183 Per £ Per Per A$ 1.7024 0.0168 0.9168 1.3266 0.0131 0.7149 1.1766 0.0116 0.6336 151.5152 1.4990 81.3008 0.0099 0.5386 54.6365 How much will he save (in C$) by buying the Corvette in California? (Do not round your intermediate calculations. Round your answer to two decimal places.) Savings C$
Transcribed Image Text:Kevin lives in Calgary and wants to buy a 2016 Corvette. The best price he can find for a low-mileage model in Alberta is $52,000. (No GST would be payable on this private sale.) Through autotrader.com he tracked down a comparable car in California that he can purchase for US$34,500. To bring the car into Canada, he will have to pay 5% GST on the purchase price at Canada Customs. Additional costs will be C$587 for airfare to San Diego, US$350 in special transaction and documentation costs, and US$850 in travel and accommodation costs while driving the vehicle back to Calgary. Table 4.2 Currency Cross Rates (Noon ET, December 17, 2021) Canadian dollar (C$) U.S. dollar (US$) Euro (€) Japanese yen (¥) British pound (£) Indian rupee (*) Australian dollar (A$) Per C$ Per US$ 1.2830 Per € 1.4468 0.7794 1.1276 0.6912 0.8868 88.4975 113.5600 0.5874 0.7538 59.4290 76.0908 1.0908 1.3988 Per 0.0113 0.0088 0.0078 128.0728 0.8499 0.0066 86.0488 0.6677 101.600 1.5782 0.0123 1.8568 0.0183 Per £ Per Per A$ 1.7024 0.0168 0.9168 1.3266 0.0131 0.7149 1.1766 0.0116 0.6336 151.5152 1.4990 81.3008 0.0099 0.5386 54.6365 How much will he save (in C$) by buying the Corvette in California? (Do not round your intermediate calculations. Round your answer to two decimal places.) Savings C$
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