Question
On October 1, 2019, a U.S. company acquired goods from a foreign company for 840,000 FCU, payable in FCU on April 1, 2020. Spot rates
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On October 1, 2019, a U.S. company acquired goods from a foreign company for 840,000 FCU, payable in FCU on April 1, 2020. Spot rates on various dates are listed as follow:
| 10/01/2019 | USDFCU = 1.2 |
| 01/01/2020 | USDFCU = 1 |
| 04/01/2020 | USDFCU = 1.4 |
As a result of this transaction, the U.S. company has a foreign currency transaction gain (loss) in 2019 of:
A.
$168,000
B.
($140,000)
C.
$140,000
D.
($168,000)
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Stand Up To The Irs How To Handle Audit Tax Bill And Tax Count
Authors: Frederick W. Daily, Robin Leonard
1st Edition
0873373375, 978-0873373371
