Question
Required information Use the following information for Problems 20 and 21 Skip to question [The following information applies to the questions displayed below.] McCarthy, Inc.'s
Required information
Use the following information for Problems 20 and 21
Skip to question
[The following information applies to the questions displayed below.]
McCarthy, Inc.'s Brazilian subsidiary borrowed 121,000 euros on January 1, 2020. Exchange rates between the Brazilian real (BRL) and euro () and between the U.S. dollar ($) and BRL are as follows:
BRL per | US$ per BRL | |
January 1, 2020 | BRL 4.20 | $ 0.28 |
Average, 2020 | BRL 4.30 | $ 0.25 |
December 31, 2020 | BRL 4.60 | $ 0.20 |
Part a
At what amount should the Brazilian subsidiary's euro note payable be reported on McCarthy's December 31, 2020, consolidated balance sheet?
part b
What amount of foreign exchange gain or loss should be reflected in McCarthy's 2020 consolidated net income?
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