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4. On 1 April 2018 Mallins Ltd, a company that uses $ as its functional currency, buys goods from an overseas supplier, who uses Hromits

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4. On 1 April 2018 Mallins Ltd, a company that uses $ as its functional currency, buys goods from an overseas supplier, who uses Hromits (Kr) as its functional currency. The goods are priced at Kr 54,000. Payment is made 2 months later on 31 May 2018. The prevailing exchange rates are: 1 April 20X8 Kr1.80 : $1 31 May 20X8 Kr1.75 : $1 What will be currency differences amount and payment amount at payment day 31 May: (: 1) 857 $ loss, 30 857 $ payment 857 $ loss, 30 000 $ payment 857 $ profit, 30 857 $

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