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On January 1, 2020, Canadian Music International (CMI), a manufacturer of high-end recording equipment based in Toronto, shipped US$120,000 worth of inventory to its main
- On January 1, 2020, Canadian Music International (CMI), a manufacturer of high-end recording equipment based in Toronto, shipped US$120,000 worth of inventory to its main U.S. distributor in Chicago, with full payment of these goods due by February 28, 2020. CMI has a January 31 year end. A list of significant dates and exchange rates is shown below.
The invoice price billed by CMI was US$120,000. What is the amount of CMI's foreign exchange gain or loss at year-end?Transaction Date: January 1, 2020 US $1 = CDN $1.141 Year-End Date: January 31, 2020 US $1 = CDN $1.142 Settlement Date: February 28, 2020 US $1 = CDN $1.145 CDN$120 loss
CDN$480 gain
CDN$120 gain
Nil; foreign exchange gains or losses are deferred to settlement
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IT And European Bank Performance
Authors: E. Beccalli
1st Edition
0230006949, 9780230006942
