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RWB Corporation, a U. S. based company, bought inventory from a German company on June...

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Accounting

RWB Corporation, a U. S. based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros. The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros. RWBs measurement currency is the U. S. dollar. RWB Corporation:

Question 7 options:

a)

has an economic gain on the transaction.

b)

should record the inventory for $9,600.

c)

is exposed to an economic loss on the transaction.

d)

should record the inventory for 12,000 euros.

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