XYZ Company purchased equipment for 500,000 British pounds from a supplier in London on May 7, 2021. Payment in British pounds is due on July 7, 2021. The exchanges to purchase pound is as follows: Mayne Year-end) July 2 Spot rate 408 405 30-day rate 4507 403 60-day rate 31.99 404 On its June 31, 2021 income statement, what amount should XYZ report as a foreign exchange transaction yain: O A 515,000 O $10,500 OC 57,000 OD. None of the above Question 4 On September 1, 2021. Senturo Company entered into a forward exchange contract to purchase 250,000 euros in 120 days. The relevant exchange rates are as follows: Spot Rate Forward Rate for December 31, 2021 September 1.2021 2.46 2.47 December 31,2021 (Year-end) 2.50 2.49 On December 31, 2021, what amount of foreign currency transaction gain should Sentaro report in income? O A $10,000 B. 55.000 OC. $2.500 OD SO A transaction loss is recorded when there is an: O A. Importing transaction and the exchange rate decreases. O B. Exporting transaction and the exchange rate increases. c. Exporting transaction and the exchange rate decreases. O D. None of these. During 2020, a UAE Dubai based company purchased inventory from a foreign supplier in Europe. The transaction was denominated in the local currey of the well. The dirt change decreased from the date of the transaction to the balance sheet date. The exchange rate increased from the balance sheet date to the settlement (puyment) date in 2021. For the year 2000 3001 transaction in or losses should be recognized as O A 2020 Gain, 2021 Gain O. 2020 Gain; 2021 Loss c.2020 Loss: 2021 Loss O 0.2020 Loss, 2021 Gain A direct exchange rate quotation is one in which the exchange rate is quoted: O A In terms of how many units of the domestic currency can be converted into one unit of foreign currency 8. In terms of how many units of the foreign currency can be converted into one unit of domestic currency Oc For the immediate delivery of currencies exchanged. OD. None of the above. A foreign currency transaction to a company located in the United Arab Emirates is a transaction in which the amount is: O A. Denominated in United Arab Emirates Dirham (AED). OB. Denominated in a foreign currency O c. Measured in U.S. dollars. O D. All of the above. On December 1, 2019. Deno Corp. entered into a transaction to import raw materials from a foreign company. The account is to be settled on February with the payment of 1000 origen units. On December 1, Deno alto entered into a forward contract to hedge the exposed position resulting from the importation. The forward tel 50.71 per unit of foreign curry Corp. has a December 31 fiscal year-end. Spot rates and the forward rates on releval dates were Date Spor Rate (5) Forward Rate for February 1 Delivery (5) December SO 0121 December 02 05 February 02 0.73 The entry to record the forward contract will include a debito A FC Receivable from Exchange Dealer 42.600 O Dollars Payable to Exchange Dealer 42.600 OC Accounts Payable 41,400 OD. Accounts Receivable 41,400
