On November 6, 20X7, Zucor Corp. purchased merchandise from an unaffiliated foreign company for 50,000 units of the foreign comp
any's local currency. On that date, the spot rate was $1.259. Zucor paid the bill in full three months later when the spot rate was $1.258. The spot rate was $1.255 on December 31, 20X7. What amount should Zucor report as a foreign currency transaction gain in its income statement for the year ended December 31, 20X7?
a. $0
b. $50
c. $
d. $200
a. $0
b. $50
c. $
d. $200
1 answer:
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Answer:
c. a decrease in the wage rate of accountants
Explanation:
As a result of the revision that makes personal tax returns much easier to complete, people would no longer need the services of accountants to calculate their tax returns. As a result, the demand for accountants would fall, all other things remaining equal.
The fall in demand would lead to a fall in wage rate of accountants
Please check the attached image for a graph explaining this concept
