Question
Your company has just gone global. You have sold $10,000 worth of product to a customer in Mexico City. The customer will pay in Pesos.
Your company has just gone global. You have sold $10,000 worth of product to
a customer in Mexico City. The customer will pay in Pesos. The current exchange
rate is $1 = 10 Pesos, so the customer agrees to pay 100,000 Pesos in 30 days.
After 30 days the exchange rate is now $1 = 12 Pesos. You receive payment from your customer. What is the gain or loss (in U.S. $) due to exchange rate fluctuations? (round to nearest dollar - ex: 123)
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
