13. A U.S. corporation imported merchandise from a British company for 1,000 when the spot rate was...

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13. A U.S. corporation imported merchandise from a British company for £1,000 when the spot rate was $1.45.

It issued financial statements when the current rate was $1.47, and it paid for the merchandise when the spot rate was $1.46. What amount of exchange gain or loss will be included in the U.S. corporation’s income statements in the period of purchase and in the period of settlement?

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Advanced Accounting

ISBN: 9781292214597

13th Global Edition

Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith

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