Q5:

During December of the current year 2020, X (American), entered into the following transactions: 1- On 10 December 2020, X sold 7 units of inventory to Y located in Colombia for 1,953,125 pesos. On this date (spot rate $1 = 125 pesos]. 2- On 31 December 2020, suppose that the exchange rate was [$1 = 127 pesos]. 3- On 1 March 2021 the customer from Colombia paid the due amount when exchange rate is [[$1 = 133 pesos]. X uses two transactions approach. On 31 December 2020 X will Achieve

a.

No gain or loss

b.

Transaction gain $246

c.

Transaction gain 246pesos

d.

Transaction loss $246