User Account

All Pages

Calculate the total exchange gain or loss on this investment

Assignment Help Accounting Basics
Reference no: EM131713018

Question - A U.S. company purchases a 90-day certificate of deposit from a Singapore bank on May 15, when the spot rate is $0.72/S$. The certificate has a face value of S$1,000,000 and pays interest at an annual rate of 3 percent. On August 13, the certificate of deposit matures and the company receives principal and interest of S$1,007,500. The spot rate on August 13 is $0.69/S$. The average spot rate for the period May 15 - August 13 is $0.70/S$. The company's accounting year ends December 31.

The total exchange gain or loss on this investment is:

A. $20,000 loss

B. $20,000 gain

C. $30,000 gain

D. $30,000 loss

Reference no: EM131713018

Questions Cloud

Discuss about the stratification variable : Use any considerations you like to divide Stephens County into strata. Your stratification should divide Lockhart City into approximately five strata.
How do hormones affect psychological aspect of puberty : How do hormones affect the physical and psychological aspects of puberty? Be specific by giving examples.
Review the various project management frameworks : Compare the listed activities with the processes described in Figure 3.2 Process - flow of Requirements Engineering in Chapter 3 of the text.
Identify the major causes of the great depression : Identify the major causes of the Great Depression. What were its social effects and how did it affect the lives of American businessmen
Calculate the total exchange gain or loss on this investment : A U.S. company purchases a 90-day certificate of deposit from a Singapore bank on May 15, The total exchange gain or loss on this investment is
Setting up a guest cluster : You have three Hyper-V servers, and you're currently running four VMs on each server for a total of 12 VMs.
Discuss a type of subtle prejudicial behavior : A type of subtle prejudicial behavior that has advanced to a degree that is much more difficult to see
Server requirements for a failover cluster : You're setting up the application discussed, because the company is new, there are no servers you're setting everything up from scratch.
Define conditions of optimal allocation : Under what conditions can optimal allocation be expected to perform much better than proportional allocation? Do these conditions occur in Lockhart City?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd