Cedar Co., a U.S. corporation, sold inventory on December 1, 2023, with payment of 12,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: Date December 1, 2023 December 31, 2023 January 30, 2024 O $0 Spot Rate (U.S. Dollar per British pound) $1.831 $1.976 $1.768 What amount of foreign exchange transaction gain or loss should be recorded on January 30, 2024?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cedar Co., a U.S. corporation, sold inventory on December 1, 2023, with payment of 12,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows:
Date
December 1, 2023
December 31, 2023
January 30, 2024
O $0
Spot Rate
(U.S. Dollar per British pound)
O $756 loss
O $1,740 gain
O $2,496 loss
$1.831
$1.976
What amount of foreign exchange transaction gain or loss should be recorded on January 30, 2024?
$1.768
Transcribed Image Text:Cedar Co., a U.S. corporation, sold inventory on December 1, 2023, with payment of 12,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: Date December 1, 2023 December 31, 2023 January 30, 2024 O $0 Spot Rate (U.S. Dollar per British pound) O $756 loss O $1,740 gain O $2,496 loss $1.831 $1.976 What amount of foreign exchange transaction gain or loss should be recorded on January 30, 2024? $1.768
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