Determine foreign exchange transaction

Assignment Help Accounting Basics

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

Questions Cloud

Thin, thick and combined cylinder theory : Strength of Materials: Advanced DV01 35, LO2 Thin, Thick and Combined Cylinder Theory: This outcome is assessed using all three of the assignments detailed below. For each assignment you are required to write a report.

Prepare a table that shows the profit and payoff : Options on a stock with strike prices - Prepare a table that shows the profit and payoff for both spreads

Elucidate the concept of the multiplier : Elucidate the concept of the multiplier, and explain the role of the marginal propensity to consume in determining the size of the multiplier.

Prepare a schedule to determine the incremental cost : Crafty Tools manufactures an electric motor that is uses in many of its products. Organization is planning whether to continue manufacturing the motors or to buy them from an outside source.

Determine foreign exchange transaction : Post Inc, had a receivable from a foregn customer that is payable in customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local currency units

Find the the annual ordering cost : Find the the annual ordering cost, and the optimal order quantity for the zen-zens?

How to assume that a has a greater charge : small metal bead, labeled A, has a charge of 26 . It is touched to metal bead B, initially neutral, then that the two beads share the 26 charge, but not required equally. When the two beads are then placed 5.0 apart, force between them is 5.4×10-..

Question on exchange rate risk : Assume you own portfolio of British securities valued at $430,000. The exchange rate is currently at $1 = £0.57. A currency contract on British pounds is set at 62,500 pounds.

Explain what is the expected dividend yield : Explain what is the current value or price of CompU's stock and explain what is the expected dividend yield

User Account

All Pages