Question
Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2020, Brief correctly included this
Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2020, Brief correctly included this receivable for 435,000 local currency units (LCU) in its balance sheet at $152,500. When Brief collected the receivable on February 15, 2021, the U.S. dollar equivalent was $163,200. In Brief's 2021 consolidated income statement, how much should it report as a foreign exchange gain?
Multiple Choice
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$15,700
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$26,400
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$0
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$10,700
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
