On December 2, 2020, Troll Company, a U.S. company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal year-end is December 31 and its 2020 income from continuing operations does not include any foreign currency exchange gain or loss, it is most likely that: O A. Troll entered into a forward contract to purchase Mexican peso on March 4, 2021. O B. this transaction caused a foreign currency translation gain or loss to be adjusted to the accounts receivable (Mex$). O C. this sale was denominated in U.S. dollars. O D. this transaction resulted in a foreign currency transaction gain or loss to be included in other comprehensive income.
On December 2, 2020, Troll Company, a U.S. company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal year-end is December 31 and its 2020 income from continuing operations does not include any foreign currency exchange gain or loss, it is most likely that: O A. Troll entered into a forward contract to purchase Mexican peso on March 4, 2021. O B. this transaction caused a foreign currency translation gain or loss to be adjusted to the accounts receivable (Mex$). O C. this sale was denominated in U.S. dollars. O D. this transaction resulted in a foreign currency transaction gain or loss to be included in other comprehensive income.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![On December 2, 2020, Troll Company, a U.S. company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal
year-end is December 31 and its 2020 income from continuing operations does not include any foreign currency exchange gain or loss, it is most likely
that:
O A. Troll entered into a forward contract to purchase Mexican peso on March 4, 2021.
O B. this transaction caused a foreign currency translation gain or loss to be adjusted to the accounts receivable (Mex$).
O C. this sale was denominated in U.S. dollars.
O D. this transaction resulted in a foreign currency transaction gain or loss to be included in other comprehensive income.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F480fc452-cfa8-4e9a-83c2-9515ff71d78d%2F43103c12-14a5-4ff6-be7d-8fa7c9e85ca9%2Ffivo7l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On December 2, 2020, Troll Company, a U.S. company, sold machinery to Amigo, a Mexican company, with payment due on March 4, 2021. If Troll's fiscal
year-end is December 31 and its 2020 income from continuing operations does not include any foreign currency exchange gain or loss, it is most likely
that:
O A. Troll entered into a forward contract to purchase Mexican peso on March 4, 2021.
O B. this transaction caused a foreign currency translation gain or loss to be adjusted to the accounts receivable (Mex$).
O C. this sale was denominated in U.S. dollars.
O D. this transaction resulted in a foreign currency transaction gain or loss to be included in other comprehensive income.
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