Stuff Inc., a U.S. company, imported goods for 50,000 euro on Dec. 10, Year 1 and paid for them on Jan. 10. Year 2. The following exchange rates were applicable in Years 1 and 2: Exchange Rate 0.79 € Date Dec. 10, Yr. 1 Dec 31, Yr. 1. 0.82 € Jan 10, Yr. 2 0.75 € What approximate gain or loss will Stuff book on Jan. 10, Year 27 OA gain of $3,000 A loss of $3,000 OA gain of $5,500. OA loss of $5,500
Stuff Inc., a U.S. company, imported goods for 50,000 euro on Dec. 10, Year 1 and paid for them on Jan. 10. Year 2. The following exchange rates were applicable in Years 1 and 2: Exchange Rate 0.79 € Date Dec. 10, Yr. 1 Dec 31, Yr. 1. 0.82 € Jan 10, Yr. 2 0.75 € What approximate gain or loss will Stuff book on Jan. 10, Year 27 OA gain of $3,000 A loss of $3,000 OA gain of $5,500. OA loss of $5,500
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 1IEE
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![Stuff Inc., a U.S. company, imported goods for 50,000 euro on Dec. 10, Year 1 and paid for them on Jan. 10. Year 2. The
following exchange rates were applicable in Years 1 and 2:
Exchange Rate
Date
Dec. 10, Yr. 1
Dec 31, Yr 1
Jan 10, Yr. 2
What approximate gain or loss will Stuff book on Jan. 10, Year 2?
OA gain of $3,000.
OA loss of $3,000
O Again of $5,500
OA loss of $5,500.
0.79 €
0.82 €
0.75 €](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97acff04-b4cf-43b4-bf87-7723b5f0950f%2Fde03aeb2-7ded-4dfd-8d77-674b4217f26b%2F6mvstea_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stuff Inc., a U.S. company, imported goods for 50,000 euro on Dec. 10, Year 1 and paid for them on Jan. 10. Year 2. The
following exchange rates were applicable in Years 1 and 2:
Exchange Rate
Date
Dec. 10, Yr. 1
Dec 31, Yr 1
Jan 10, Yr. 2
What approximate gain or loss will Stuff book on Jan. 10, Year 2?
OA gain of $3,000.
OA loss of $3,000
O Again of $5,500
OA loss of $5,500.
0.79 €
0.82 €
0.75 €
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