?

On November 30, year 1, Tyrola Publishing Company,
located in Colorado, 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, year 2,
totaled $50,000 Canadian. Tyrola paid Blyton his year 2 royalties
on January 10, year 3. Tyrola’s year 2 financial statements were
issued on February 1, year 3. Spot rates for Canadian dollars
were as follows:

November 30, year 1 $.87

January 1, year 2 $.88

December 31, year 2 $.89

January 10, year 3 $.90

How much should Tyrola accrue for royalties payable at December
31, year 2?