|Posted: 08 May 2009 at 18:22 | IP Logged
On October 1 of the current year, a U.S. company sold merchandise on account to a British company for
2,000 pounds (exchange rate, 1 pound = $1.43). At the company's December 31 fiscal year end, the
exchange rate was 1 pound = $1.45. The exchange rate was 1 pound = $1.50 on collection in January of
the subsequent year. What amount would the company recognize as a gain(loss) from foreign currency
translation when the receivable is collected?
Choice "b" is correct
I think the anwser for U.S company it should be (100), 100 loss instead of 100 gain.
who can help me with this? Thanks a lot!