Question
Translation losses are ____, while gains on forward contracts used to hedge translation exposure are ____. a. tax deductible; not taxed b. not tax deductible;
Translation losses are ____, while gains on forward contracts used to hedge translation exposure are ____.
a. tax deductible; not taxed
b. not tax deductible; not taxed
c. not tax deductible; taxed
d. tax deductible; taxed
Answer given is D but I believe the answer is C because translation losses are accounted in shareholder's equity, therefore not tax deductible. Please Advise.
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
