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Turo, a US corporation, bought inventory items from a supplier in Argentina on November 5, 2009, for 100,000 Argentine pesos, when the spot rate was
Turo, a US corporation, bought inventory items from a supplier in Argentina on November 5, 2009, for 100,000 Argentine pesos, when the spot rate was $.4295. At Turos December 31, 2009 year-end, the spot rate was $.4245. On January 15, 2010, Turo bought 100,000 pesos at the spot rate of $.4345 and paid the invoice. How much should Turo report as part of net income for 2009 and 2010 as foreign exchange transaction gain or loss? 2009 2010
$500 $(1,000) |
$0 $(500) |
$(500) $0 |
$(1,000) $ 500 |
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