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Cade Inc. had a CREDIT adjustment of $6800 for the year ended December 31, 2022, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars.

Cade Inc. had a CREDIT adjustment of $6800 for the year ended December 31, 2022, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cade Inc. had a CREDIT adjustment of $6800 for the year ended December 31, 2022, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars. Additionally, Cade had a receivable from a foreign customer. It is denominated in the customer's local currency. On December 31, 2021, this receivable for 280,000 local currency units (LCU) was correctly included in Cade's balance sheet at $120400. When the receivable was collected on May 10 2022, the U.S. dollar- equivalent was $108300. In Cade's 2022 consolidated statement of income, how much should be reported as foreign exchange gain/(loss) in computing net income? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE NUMBER IS NEGATIVE, TYPE -1000 INSTEAD OF ($1,000)
Transcribed Image Text:Cade Inc. had a CREDIT adjustment of $6800 for the year ended December 31, 2022, from restating its foreign subsidiary's accounts from their local currency units into U.S. dollars. Additionally, Cade had a receivable from a foreign customer. It is denominated in the customer's local currency. On December 31, 2021, this receivable for 280,000 local currency units (LCU) was correctly included in Cade's balance sheet at $120400. When the receivable was collected on May 10 2022, the U.S. dollar- equivalent was $108300. In Cade's 2022 consolidated statement of income, how much should be reported as foreign exchange gain/(loss) in computing net income? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000. IF THE NUMBER IS NEGATIVE, TYPE -1000 INSTEAD OF ($1,000)
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