Mint Corporation has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On November 2, 20X8, Mint sold confectionary items to a foreign company at a price of LCU 23,000 when the direct exchange rate was 1 LCU = $1.08. The account has not been settled as of December 31, 20X8, when the exchange rate has increased to 1 LCU = $1.10. The foreign exchange gain or loss on Mint's records at year-end for this transaction will be:
A. $460 lossB. $387 lossC. $387 gainD. $460 gain
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Mint Corporation has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Charles Underwood Agency Inc. recently raised capital through an initial public offering (IPO). Its stock can now be purchased on the NYSE. This company is referred to as: (a) A publicly owned corporation (b) A closely held corporation
Answers (1)
Wilma has a $57,500 certificate of deposit (CD) at the local bank. The interest on this certificate, $1,150, was credited to her account this year but she must pay an early withdrawal penalty if she cashes in the CD before next year.
Answers (1)
What do Hotel, Motel, and Resort Clerks need to be knowledgeable about? Check all that apply. A) airport safety B) first aid C) hotel services D) local attractions E) food hygiene F) checkout times
Answers (1)
Your father's employer was just acquired, and he was given a severance payment of $365,000, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year.
Answers (1)
Benton Lamps applies overhead using direct labor hours. Budgeted total overhead cost was $472,000 and estimated direct labor hours were 118,000 for the first quarter.
Answers (1)
New Questions in Business
Which of the following is a compound sentence?
Answers (1)
You currently have $3,400 in an investment account that returns 11% per year. How long will you have to wait until you can make $5,000 down payment on a car? A loan you took out is due in three years and requires repayment of $3000.
Answers (1)
ptown Promotions has three divisions. As part of the planning process, the CFO requested that each division submit its capital budgeting proposals for next year.
Answers (1)
Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each of the next 20 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today?
Answers (1)
Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.
Answers (1)