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Walter purchased 100 shares of ABC stock, a Japanese company, last year. At the time...

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Accounting

Walter purchased 100 shares of ABC stock, a Japanese company, last year. At the time of his purchase, ABC's stock was trading on the Tokyo exchange at 4,600 yen per share, and the exchange rate was 120 yen to the U.S. dollar. Walter has just checked on the price of ABC, which is currently trading at 4,700 yen per share on the Tokyo stock exchange. The exchange rate is now 130 yen to the U.S. dollar. Which of the following statements is CORRECT? A) Walter's capital gain was offset by the fall in the value of the yen relative to the U.S. dollar. B) Walter's capital gain is greater than $2 per share due to the rise in the value of the yen relative to the U.S. dollar. C) The change in the value of the yen has no effect on Walter's capital gain or loss. D) Walter has a capital gain on the stock and on the currency conversion.

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