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USAco is a domestic corporation with the U.S. dollar ($) as its functional currency. On January 1 of year one, when 1 British pound ()
USAco is a domestic corporation with the U.S. dollar ($) as its functional currency. On January 1 of year one, when 1 British pound () equals $1, USAco sells inventory to a British customer for 200 to be paid in 30 days. As a result, USAco books $200 (200 the spot rate of $1) of income and creates a receivable for 200 British. On January 30 of year one, when 1 equals $1.20, USAco receives 200 in payment of the receivable. What is USAcos currency gain on these Code Sec. 988 transactions?
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