n December 5, 20X3, Goose Corporation, a US firm, bought inventory items fom Grebes Corporation of Norway for 1,000,000 Norwegian krone when the spot rate for krone was $0.168. At Goose's December 31, year end, the spot rate was $0.167. On January 4, 20X4, Goose purchased 1,000,000 krone for $167,500 ane paid the invoice, How much gain or (loss) did Goose report in its 20X3 and 20X4, respectively, income statements? a, $(1,000) and $500
n December 5, 20X3, Goose Corporation, a US firm, bought inventory items fom Grebes Corporation of Norway for 1,000,000 Norwegian krone when the spot rate for krone was $0.168. At Goose's December 31, year end, the spot rate was $0.167. On January 4, 20X4, Goose purchased 1,000,000 krone for $167,500 ane paid the invoice, How much gain or (loss) did Goose report in its 20X3 and 20X4, respectively, income statements? a, $(1,000) and $500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 5, 20X3, Goose Corporation, a US firm, bought inventory items from Grebes Corporation of
Norway for 1,000,000 Norwegian krone when the spot rate for krone was $0.168. At Goose's December 31,
year end, the spot rate was $0.167. On January 4, 20X4, Goose purchased 1,000,000 krone for $167,500 and
paid the invoice. How much gain or (loss) did Goose report in its 20X3 and 20X4, respectively, income
statements?
a, $(1,000) and $500
b.
$0 and ($500)
$0 and $500
d. $1.000 and (S500)
Your answer is incorrect
The cotrect answer i
$1,000 and (5500
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