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An agreement is reached for an American company to purchase a machine from a foreign vendor for 100,000 euros. At the time of the agreement,
An agreement is reached for an American company to purchase a machine from a foreign vendor for 100,000 euros. At the time of the agreement, the exchange rate is 1.20 dollars per euro. At the time of the transaction, the exchange rate has changed to 1.10 dollars per euro. What is the net effect of this change in exchange rate for the American company?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
