Marko Company sold spray paint equipment to Spain for \(5,000,000\) pesetas ( \(\mathrm{P}\) ) on October 1, with payment due in six months. The exchange rates were:

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a. Did the dollar strengthen or weaken relative to the peseta during the period from October 1 to December 31? Did it strengthen or weaken between January 1 and April 1 of the next year?

b. Prepare all required journal entries for Marko Company as a result of the sale and settlement of the foreign transaction, assuming its fiscal year ends on December 31 .

c. Did Marko Company have an overall net gain or net loss from its foreign currency exposure?

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October 1. 20X6 December 31, 20X6 April 1, 20X7 === I peseta = $.0068 1 peseta= .0078 1 peseta = .0076