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On December 2.2020. Troll Company, a U.S.company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal year
On December 2.2020. Troll Company, a U.S.company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal year end in December 31 and its 2020 income from continuing operations does not include any foreign currency exchange gain or loss, it is most likely that Troll entered into a forward contract to purchase Mexican peso on March 4, 2021. 8. this transaction caused a foreign currency translation gain or loss to be adjusted to the accounts receivable (Mex$). this transaction resulted in a foreign currency transaction gain or loss to be included in other comprehensive income D. this sale was denominated in U.S. dollars
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