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Calibri (Body) 11 A A a Wrap Text Merge & Cent BI U OA = = x fx A B C D E F G

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Calibri (Body) 11 A A a Wrap Text Merge & Cent BI U OA = = x fx A B C D E F G BE SURE TO ANSWER ALL QUESTIONS (2A) THROUGH (20) IN AREAS PROVIDED BELOW: 2. On October 31, 2019, INVESCO Inc. negotiated a two-year 1,000,000 Euro loan from a foreign bank at an annual interest rate of 3.0%. Interest expense is accrued each month at the end of a month and Interest payments are made annually on October 31". The principal will be repaid Jon October 31, 2021. INVESCO prepares U.S.-dollar financial statements and has a December 31 - year-end. The relevant currency translation rates are as follows: EURO Date Per US $ 10/31/2019 Spot rate: $ 1.1100 11/30/19 Spot rate: $ 1.1000 12/31/19 Spot rate: $ 1.1200 2A. Prepare the journal entry to record the loan from the foreign bank on October 31, 2019? SHOW ALL WORK IN SUPPORT OF YOUR ANSWER! 2B. As of 11/30/2019 what foreign currency exposures does INVESCO have regarding this transaction, and what foreign exchange gain or loss would INVESCO record from any foreign currency exposures on this transaction. SHOW ALL WORK IN SUPPOR OF YOUR ANSWER Review View 1 Data E - Formulas A A A v Insert Draw Page Layout Calibri (Body) - 11 BIU E x x B . o a = 3 - As of 12/31/2019 what foreign exchange gains or losses that would INVESCO recognize? Prepare the journal entry to record any foreign exchange gain or loss. SHOW ALL WORK IN SUPPOR OF YOUR

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