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22. Jackson Paving Company purchased equipment for 350,000 British pounds from a supplier in London on July 7, 2016. Payment in British pounds is due on Sept. 7, 2016 The exchange rates to purchase one pound is as follows: Spot-rate 30-day rate 60-day rate 2.08 2.07 2.06 2.05 2.03 1.99 2.04 On its August 31, 2016 income statement, what amount should Jackson Paving report as a foreign exchange transaction gain: A) $14,000 B) $7,000. C) SO. D) $10,500. 23. When translating foreign currency financial statements for a company whose functional currency is the U.S. dollar, which of the following accounts is translated using historical exchange rates? Notes Pavable Equipment a. b. Yes c. No d. No Yes Yes No No Yes 24. Which of the following would be restated using the current exchange rate under the temporal method? A) Common stock. B) Marketable securities carried at cost. C) Inventory carried at market. D) None of these. 25. When the functional currency is identified as the U.S. dollar, land purchased by a foreign subsidiary after the controlling interest was acquired by the parent company should be translated using the: A) forward rate. B) historical rate in effect when the land was purchased. C) average exchange rate for the current period. D) current rate in effect at the balance sheet date

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