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Kobotan [32]
3 years ago
5

On December 12, year 1, Imp Co. entered into three forward exchange contracts, each to purchase 100,000 euros in ninety days. Th

e relevant exchange rates are as follows: Spot rate Forward rate (for March 12, year 2) November 30, year 1 $.87 $.89 December 12, year 1 $.88 .90 December 31, year 1 $.92 .93 At December 31, year 1, what amount of foreign currency transaction loss should Imp include in income from the revaluation of the Accounts Payable of 100,000 euros incurred as a result of the purchase of inventory at November 30, year 1, payable in March year 2?
Business
1 answer:
timama [110]3 years ago
6 0

Answer:

40.000

Explanation:

I think your approach is not clear at all, but your question is.

So if you have bought merchandise worth 100,000 euros but your records are in other currencies, you must take the exchange rate at the time of the operation, this is $ 0.89. You will register

Inventorty 890.0000

accounts paylable     890,000

At the close of the fiscal year your liabilities must be valued at the official exchange rate, in this case it is $ 0.93

then your foreign currency debt increases, but not your inventory, the other account that is used is a negative result for this rate change

loss exchange rate    40,000

accounts paylable                     40.000

in the valuation of liabilities the seller exchange rate is used

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<h3><u>What is encoding?</u></h3>
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Different signals require different levels of conscious thought when they are encoded. The encoder should also care for any "noise"—such as other messages, distractions, or influences—that could obstruct their message.

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7 0
1 year ago
When shares of stock that were issued to the public are later bought and sold among investors on the stock exchange, the issuing
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1 year ago
Explain the difference between mandatory and discretionary spending? provide an example of each kind of spending"
nataly862011 [7]
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5 0
3 years ago
What is the difference between accounts payable and accounts receivable?
NeX [460]

Accounts payable - <u>Accurately tracking what's owed to suppliers, ensuring payments are properly approved and processing </u><u>payments</u><u>.</u>

<u>\:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:</u>

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2 years ago
The internal rate of return method is used to analyze a $831,500 capital investment proposal with annual net cash flows of $250,
Umnica [9.8K]

Answer:

annuity factor for 20% and 6 periods = 3.326

Explanation:

the IRR represents the discount rate at which a project's NPV = 0

NPV = initial outlay + PV of future cash flows

NPV = 0

initial outlay = -$831,500

PV of future cash flows = $831,500 = cash flow x annuity factor

annuity factor = $831,500 / $250,000 = 3.326

using an annuity table and looking for the annuity factors for 6 periods, we find that the annuity factor for 20% and 6 periods = 3.326.

So our IRR = 20%

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3 years ago
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