Question
On September 30, Year 1, Hybrid Company purchases a new state-of-the art combine from a Japanese equipment manufacturer for 43,500,000 yen (JPY) payable March
On September 30, Year 1, Hybrid Company purchases a new state-of-the art combine from a Japanese equipment manufacturer for 43,500,000 yen (JPY) payable March 31, Year 2. The JPY/USD exchange rates are as follows: 9/30/Y1 0.0128 12/31/Y1 0.0116 3/31/Y2 0.0111 Based on the above JPY/USD exchange rate data, which of the following would be reported on Hybrid's financial statements at December 31, Year 1? $556,800 accounts payable on balance sheet. $26,100 unrealized foreign exchange loss on the income statement. $52,200 unrealized foreign exchange gain on income statement. Nothing.
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