How much should Tyrola accrue for royalties payable at December 31, 2019?
On November 30, 2018, Tyrola Publishing Co located in Manila, executed a contract with Ernest Blyton, an author from Canada, providing for payment of 10% royalties on Canadian sales of Blyton's book. Payment is to be made in Canadian dollars each January 10 for the previous year's sales. Canadian sales of the book for the year ended December 31, 2019 totaled $50,000 Canadian dollars. Tyrola paid Blyton his 2019 royalties on January 10, 2020. Tyrola's 2019 financial statements were issued on February 1, 2020. Spot rates for Canadian dollars were as follows: November 30, 2018 P22.87 January 1, 2019 27.99 December 31,2019 27.89 January 10, 2020 27.90 How much should Tyrola accrue for royalties payable at December 31, 2019?
Group of answer choices
a. 139,400
b. 139,500
c. 139,350
d. 139,450
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