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Mother Co., a U.S. corporation, sold inventory on credit to a British company on December 1, 2011. Mother received payment of 20,000 British pounds on
Mother Co., a U.S. corporation, sold inventory on credit to a British company on December 1, 2011. Mother received payment of 20,000 British pounds on February 1, 2012. The exchange rate was 1 = $1.54 on Dec 1, 2011; 1 = $1.49 on Dec 31, 2011 and 1 = 1.52 on Feb 1,2012. What total amount of foreign exchange gain or loss the Mother Co., should be recognized? O $ 400 loss O $600 gain O $1,000 loss O $ 400 gain
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