Question
Jimmy incorporation issues $1,000,000 U.S. dollars of two-year bond on January 1st 2025 at par that's mature on December 31st 2026. the coupon rate of
Jimmy incorporation issues $1,000,000 U.S. dollars of two-year bond on January 1st 2025 at par that's mature on December 31st 2026. the coupon rate of the bond is 4% payable annually on December 31st. Jimmy year end is December 31st. it does not accrue interest throughout the year.
Exchange rates are
January 1st 2025, 1CAD =0.99 US dollars
December 31st 2025, 1CAD = 0.97 US dollars
December 31st 26, 1CAD = 1.01US dollars
Average rates 2025, 1CAD = 0.98 U.S. dollars
Average rate 2026, 1CAD = 0.99 US dollars
How much of A foreign gain or loss should be recognized in regard to the interest payment on December 31 2025?
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
