Determine foreign exchange transaction

Reference no: EM1345112

Post Inc, had a receivable from a foregn customer that is payable in the customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local currency units (LCU) int its balance sheet at $110,000. When Post collected the receivable on Feb 15, 2010, the U.S. dollar equivalent was $95,000. In Post's 2010 consolidated income statement, hous much should it report as a foreign exhchange loss?

A) $0
b) $10,000
c) $15,000
d) $25,000

Reference no: EM1345112

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