Brief, Inc., had a receivable from a foreign customer that is payable in the customers local currency.
Question:
Brief, Inc., had a receivable from a foreign customer that is payable in the customer’s local currency. On December 31, 2023, Brief correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Brief collected the receivable on February 15, 2024, the U.S. dollar equivalent was $120,000. In Brief’s 2024 consolidated income statement, how much should it report as a foreign exchange gain?
a. $–0–
b. $10,000
c. $15,000
d. $25,000
Step by Step Answer:
To determine the foreign exchange gain we need to compare the original balance sheet value o...View the full answer
Fundamentals Of Advanced Accounting
ISBN: 9781266268533
9th International Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Related Video
This video is about ways to attempt consolidated balance sheet questions. since the unconsolidated financial statements of parent and subsidiary companies are prepared separately, consolidating the balance sheets of both companies is critical and sometimes becomes complex. the tutorial will guide students on to how questions on attempting questions on consolidated financial statements in an easier yet more effective way.
Students also viewed these Business questions
-
The following information should be used for questions 1, 2, and 3. Select the best answers under each of two alternative assumptions: (a) The LCU is the functional currency and the translation...
-
Brief, Inc., had a receivable from a foreign customer that is payable in the customers local currency. On December 31, 2023, Brief correctly included this receivable for 200,000 local currency units...
-
1. Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? .:. 2. In accounting...
-
Suppose you have a subject property with a 105,000 sq. ft. lot and existing improvements for which you estimate the reproduction cost new to be $2,500,000, physical deterioration to be $400,000,...
-
The year-end financial statements of Rattlers Tax Services are provided below. Required: 1. Record year-end closing entries. 2. Prepare a post-closing trial balance. RATTLERS TAX SERVICES Statement...
-
Describe the purpose of long-term care insurance and indicate whether and when John and Haley should consider purchasing this type of insurance.
-
Compare environmental stocks and flows with financial stocks and flows.When tracking and recording these stocks and flows, what are the similarities and differences in processes used?
-
Network Solutions just introduced a new, fully automated manufacturing plant that produces 2,000 wireless routers per day with materials costs of $50 per router and no other costs. The average number...
-
$ 25.00 $ 1,625,000 2 Assume that the managers of County General Hospital are setting the price on a new outpatient service. Here are relevant data estimates: 3 4 Variable cost per visit 5 Annual...
-
The undergraduate enrollments for the 13 public universities in the state of Ohio for the fall of 2020 are listed here. a. Is this a sample or a population?b. What is the mean enrollment?c. What is...
-
On December 1, 2023, Venice Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,000,000 pesos on March 1, 2024. The following U.S. dollar per peso exchange rates...
-
On October 1, Tile Co., a U.S. company, purchased products from Azulejo, a Portuguese company, with payment due on December 1. If Tiles operating income included no foreign exchange gain or loss, the...
-
What should John Young do now? John Young, Controller of the Clarion School for Boys, Inc.Milwaukee Division, hung up the telephone as the school bell signaled the end of another days classes. Youngs...
-
Describes a situation that has persisted to some extent over the last three years. How did the riskier labor markets react? Did we see wage adjustments of the sort predicted by the theory of...
-
Given the data below answer the question. Account | Debit | Credit Cash | 5,600 | Accounts Receivable|1,170 | Supplies | 450 | Equipment |5,580 | Accounts Payable | | 2230 Notes Payable | | 1,800...
-
Li bought a house in Whitby for $ 3 0 5 0 0 0 5 years ago.He made a down payment of $ 4 6 0 0 0 and financed the house through Scotia Bank with a mortgage amortized over 2 5 years. Interest for the...
-
1. What is the definition of relations of a linear relations? 2. What is the definition of relations of 2D and 3D shapes and figures?
-
The firm is currently in the middle of probating the estate of Frank Nussbaum. You have taken over the case from a paralegal who has recently left the firm and need to review her work to ensure the...
-
What are the five major objectives of a promotional strategy?
-
Starr Co. had sales revenue of $540,000 in 2014. Other items recorded during the year were: Cost of goods sold ..................................................... $330,000 Salaries and wages...
-
On January 1, 2014, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000....
-
On January 1, 2015, Johnsonville Enterprises acquired 80 percent of Stayer Companys outstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percent ownership interest was...
-
On January 1, 2014, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,141,000 in cash. The price paid was proportionate to Sellingers total fair value, although...
-
Suppose that que is a queue that holds 10 integers. Draw the queue frame of each sequence of code and show the output. Assume the following declaration for x and y. ADTqueue que; int x = 3; int y =...
-
Sarah plans to save her photos and important data for use in the next eight years. She decides to keep the files in an 32 GB pendrive/flash memory which she frequently uses on daily basis. i. Why do...
-
What is the tension each rope? A hot air balloon whose weight is 1000N is ready to lift off. It is tethered by 2 ropes at 30 to the vertical. The hot air's lifting force is 4000N.
Study smarter with the SolutionInn App