Question
On April 8, 20X2 Day Corp. purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency. Day paid the
On April 8, 20X2 Day Corp. purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency. Day paid the bill in full on March 1, 20X3 when the spot rate was $.45. The spot rate was $.60 on April 8, 20X2 and was $.55 on December 31, 20X2. For the year ended December 31, 20X3, Day should report a transaction gain of:
| A. | $500 | |
| B. | $1,150 | |
| C. | $0 | |
| D. | $1,000 |
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External Auditing Tutorial
Authors: Jo Osborne, John Taylor
1st Edition
9781909173965, 1909173967
