Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on september 1, 2019, a u.s.-based company with th

On September 1, 2019, a U.S.-based company with the $US as its functional currency purchased...

70.2K

Verified Solution

Question

Accounting

On September 1, 2019, a U.S.-based company with the $US as its functional currency purchased merchandise for 14,000 units of the foreign companys local currency. On that date, the spot rate was $1.42. The U.S.-based company paid the bill in full on February 10, 2020, when the spot rate was $1.39. The spot rate was $1.38 on December 31, 2019.

What amount should the U.S.-based company report as a foreign currency transaction gain (loss) in its income statement for the year ended December 31, 2019?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

#37 Let x = age in years of a rural Quebec woman at the time of her...

Basic Math
1.2K views

The output of a chemical process is monitored by taking a sample of 20 vials to...

Chemistry
1.2K views

A chemical analysis of a surface water yields the following data: Ion      Concentration (mg/L) Ca2+ 90 Mg2+ 30 Na+ 72 K+ 6 Cl- 120 SO42- 225 HCO3- 165 pH...

Physics
1.2K views

If the electric field in a region varies according to yi xj Assuming the potential...

Basic Math
1.2K views

Which of the following illustrates the associative property of multiplication?Enter a, b, c, d, or...

Basic Math
1.2K views

Write the equation in standard form and enter it below. Do not enter blank spaces...

Algebra
1.2K views

Work Required Consider the following system of equations 2 g 3z 3 2z z 0...

Accounting
1.2K views

The following income statement and balance sheets for...

Accounting
1.2K views

Paxton Inc. had the following information related to last year's sales: Cash sales $150,000 Credit...

Accounting
1.2K views

Ford Motor Company (FORD) sales jumped 31.5 % during June 2022 in the United States...

Accounting
1.2K views

homework help Which of the pain relievers shown on...

Accounting
1.2K views

has two parts. please complete all of the requirements. ...