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On April 1, 2017, Zorin Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are
On April 1, 2017, Zorin Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are as follows: Spot rate Forward Rate For Aug. 1, 2017 April 1, 2017 1.16 1.17 April 30, 2017 (year-end) 1.20 1.18 The second forward contract was strictly for speculation. On April 30, 2017, what amount of foreign currency transaction gain should Zorin report in income.
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian Edition volume 2
013269008X, 978-0133122855, 133122859, 978-0132690089
