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On November 15, 2023, when the spot rate is $0.14/HK$, a U.S. company sells merchandise priced at HK$1,000,000 to a customer in Hong Kong.
On November 15, 2023, when the spot rate is $0.14/HK$, a U.S. company sells merchandise priced at HK$1,000,000 to a customer in Hong Kong. The spot rate is $0.135 on December 31, the company's year-end. Payment of HK$1,000,000 is received from the customer on February 1, 2024, when the spot rate is $0.132. What exchange gains and losses are reported in 2023 and 2024 income? Select one: O a. 2023 2024 $5,000 exchange gain $3,000 exchange gain b. 2023 2024 No effect $8,000 exchange loss C. 2023 2024 $5,000 exchange loss $3,000 exchange loss d. 2023 2024 No effect $8,000 exchange gain
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Forensic Accounting
Authors: Robert Rufus, Laura Miller, William Hahn
1st Edition
133427528, 133050475, 9780133427523, 978-0133050479
