Question 2- Foreign Currency: ABC Inc. has a US Dollar payable on its books at $125,000 Canadian. On December 31 of the current year, the exchange rate is S1 Canadian dollar-S0.78 USD. Did this result in a gain or loss? How much was the gain or loss?

Question 2- Foreign Currency: ABC Inc. has a US Dollar payable on its books at $125,000 Canadian. On December 31 of the current year, the exchange rate is S1 Canadian dollar-S0.78 USD. Did this result in a gain or loss? How much was the gain or loss?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 28P

See similar textbooks

Similar questions

A7
Help aved Save & Exit Submit The Simpson Corporation is calculating their adjusted balance sheet into U.S. Dollars. The exchange rate at the beginning of the year was $1 Euro = $1 U.S. dollar. The current exchange rate is 80 Euros to $1.00. Net Income for the year was zero. How much is the accounting gain/loss due to of 3 the exchange rate change? Beginning Balance Sheet: • Assets = 3,000 Euros %3D Equity = 1,500 Euros • Liabilities = 1,500 Euros %3D ed
Translate into dollars the balance sheet of Nevada Leather Goods' Spanish subsidiary. When Nevada Leather Goods acquired the foreign subsidiary, a euro was worth $1.07. The current exchange rate is $1.36. During the period when retained earnings were earned, the average exchange rate was $1.18 per euro. E (Click the icon to view the financial data.) Requirement During the period covered by this situation, which currency was stronger, the dollar or the euro? 870,000 Assets Liabilities 560,000 Shareholders' equity Share capital 75,000 Retained earnings 235,000 Foreign-currency translation adjustment 870,000 During this period, the was stronger than the V The V produced the V translation adjustment. Choose from any list or enter any number in the input fields and then continue to the next question.
I need the answer as soon as possible
None
On October 2, 20X4, Duck Corporation borrowed 150,000 British pounds from a London bank, evidenced by an interest-bearing note payable due in one year. The note was payable in pounds. Exchange rates for pounds was: October 2, 20X4 $1.60 December 31, 20X4 $1.62 October 2, 20X5 $1.56 What exchange gain or loss appeared on Duck's 20X4 income statement? O a. a gain of $3,000 O b. a gain of $6,000 a loss of $6,000 O d. a loss of $3,000
How much foreign exchange gain (loss) will you recognize on December 31, 20x1? 100,000 (100,000) 200,000 (200,000)
Tristan Narvaja, S.A. (C). Calculate Tristan Narvaja’s contribution to its parent’s translation gain or loss using the current rate method if the exchange rate on December 31 is $U12 = $1.00. Assume all peso accounts remain as they were at the beginning of the year.
How much is the foreign exchange gain (loss) to be recognized by Entity A on January 6, 20x2? (5,000) (3,000) 5,000 3,000
QUESTION # 1North Bank has been borrowing in the U.S. markets and lending abroad, thus incurring foreign exchange risk. In a recent transaction, it issued a one-year $2 million CD at 6 percent and funded a loan in euros at 8 percent. The spot rate for the euro was €1.45/$ at the time of the transaction (US being the home country).Information received immediately after the transaction closing indicated that the euro will depreciate to €1.47/$ by year-end. If the information is correct, what will be the realized spread on the loan? What should have been the bank interest rate on the loan to maintain the 2 percent spread? Assume adjustments in principal value are included in the spread.The bank had an opportunity to sell one-year forward marks at €1.46. What would have been the spread on the loan if the bank had hedged forward its foreign exchange exposure?What is interest rate parity theory and calculate that at what forward exchange rate of dollars per euro, an investor in USA would…
H3
(a) ABC Co has a year end of 31 December 20X1 and uses the dollar ($) as its functional currency. On 25 October 20X1 ABC Co buys goods from a Swedish supplier for Swedish Krona (SWK) 286,000. Rates of exchange: 25 October 20X1 $1 = SWK 11.16 16 November 20X1 $1 = SWK 10.87 31 December 20X1 $1 = SWK 11.02 Required: Show the accounting treatment for the above transactions if: (a) A payment of SWK286,000 is made on 16 November 20X1. (b) The amount owed remains outstanding at the year-end date.