On May 1, 2020, the Manila Museum purchase an original Picasso’s of drawing for 100,000 foreign currencies (FCS), payable in 30 days. On May 1, the spot rate is P6.26 to 1 FC and the 30-day forward rate is P6.50 per FC. On May 30, when the bill is paid, the spot rate is P6.70 per FC. The cost of the drawing should be recorded at:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On May 1, 2020, the Manila Museum purchase an original Picasso’s of drawing for 100,000 foreign currencies (FCS), payable in 30 days. On May 1, the spot rate is P6.26 to 1 FC and the 30-day forward rate is P6.50 per FC. On May 30, when the bill is paid, the spot rate is P6.70 per FC. The cost of the drawing should be recorded at:

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