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Bentley Biscuits, a wholly-owned English subsidiary of U.S. Bakery (a U.S. firm) maintains its inventory at cost, and Bentley Biscuits' books are reflected in British pound sterling. U.S. Bakery's functional currency is U.S. dollars. Determine the inventory value using both the temporal and current methods. Show how this will be reflected on Bentley Biscuits' statements and the consolidated statement of U.S. Bakery. Use the following information for this calculation: The historical cost of inventory is £500,000. The historical exchange rate is $0.550. The current exchange rate is $0.579.
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