What amount of foreign exchange gain or loss should be reflected in McCarthys 2020 consolidated net income?
Question:
What amount of foreign exchange gain or loss should be reflected in McCarthy’s 2020 consolidated net income?
a. $8,000 loss.
b. $10,000 loss.
c. $2,000 gain.
d. $5,000 gain.
McCarthy, Inc.’s Brazilian subsidiary borrowed 100,000 euros on January 1, 2020. Exchange rates between the Brazilian real (BRL) and euro (€) and between the U.S. dollar ($) and BRL are as follows:
Transcribed Image Text:
BRL per € US$ per BRL January 1, 2020 Average, 2020 .... December 31, 2020 BRL 4.2 $0.28 BRL 4.3 $0.25 BRL 4.6 $0.20 ...
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b On December 31 2020 the Brazilian subsidiary would recognize a ...View the full answer
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Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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