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Use the following information on the U.S. dollar value of the euro to answer the question. Forward Rate for Spot Rate April 30, 2024 Delivery $1,140 $1.130 1.148 1.145 1.100 115 1.170 1.170 October 30, 2023 November 1, 2023 December 31, 2023 April 30, 2024 On October 30, 2023, a U.S. company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30, 2024 On October 30, the US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1. On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? Select one: $500 net loss b. 1800 net gain c$800 net loss d $500 net gain

Use the following information on the U.S. dollar value of the euro to answer the question. Forward Rate for Spot Rate April 30, 2024 Delivery $1,140 $1.130 1.148 1.145 1.100 115 1.170 1.170 October 30, 2023 November 1, 2023 December 31, 2023 April 30, 2024 On October 30, 2023, a U.S. company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100.000 on April 30, 2024 On October 30, the US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1. On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? Select one: $500 net loss b. 1800 net gain c$800 net loss d $500 net gain

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information on the U.S. dollar value of the euro to answer the question, Forward Rate for Spot Rate April 30, 2024 Delivery $1.130 $1,140 3.145 October 20, 2023 November 1, 2023 December 31, 2023 April 30, 2024 1.148 1.100 1.170 On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100,000 on April 30, 2024 On October 30, the US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? Select one: a $500 net loss b, $800 net gain c. $800 net loss d $500 net gain 1.170 O Previous Save Answers Next Ⓒ
Transcribed Image Text:Use the following information on the U.S. dollar value of the euro to answer the question, Forward Rate for Spot Rate April 30, 2024 Delivery $1.130 $1,140 3.145 October 20, 2023 November 1, 2023 December 31, 2023 April 30, 2024 1.148 1.100 1.170 On October 30, 2023, a US company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100,000 on April 30, 2024 On October 30, the US company also enters a forward contract to sell €100,000 on April 30, 2024. The company delivers the merchandise to the customer on November 1, On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. What net gain or loss is recognized in 2023, in addition to sales revenue? Select one: a $500 net loss b, $800 net gain c. $800 net loss d $500 net gain 1.170 O Previous Save Answers Next Ⓒ
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