Question
On April 10, 2016, when the spot rate is $1.18/, a U.S. company sells merchandise to a customer in Italy. The spot rate is $1.19/
On April 10, 2016, when the spot rate is $1.18/€, a U.S. company sells merchandise to a customer in Italy. The spot rate is $1.19/€ on June 30, the company’s year-end. Payment of €110,000 is received on August 10, 2016, when the spot rate is $1.16/€. What is the effect on fiscal 2016 and 2017 income?
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College Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell
1st Edition
119-40600-6, 978-1119405962
