Answer:
The answer depends on whether the expected future spot rate is higher or lower than the spot rate
Explanation:
Based on the scenario been described in the question, where we see that expected future spot rate moves closer to the spots rate the uncovered parity rate will indicate whether the expected future spot rate is higher or lower than the spot rate
The Uncovered Interest Rate Parity (UIRP) is a financial definition that assumes that the variation in the nominal interest rates within two countries will be the same to the relative changes in the foreign exchange rate over equal period.
The income approach adds up the money earned by producers...
Answer:
Cash sales = $233,200 × (100 ÷ 106)
= $220,000
Credit sales = $153,700 × (100 ÷ 106)
= $145,000
Sales tax revenue = ($220,000 + $145,000) × 6%
= $21,900
Therefore, the Journal is as follows:
Sales tax revenue A/c Dr. $21,900
To sales tax payable $21,900
(To record the sales tax payable)
