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Monblanc Trading Company imports French cheeses for distribution in the United States. On July 1, the company purchased cheese costing 100,000 Euro. Payment is due in Euro on October 1. The spot rate on July 1 was $1.20 per Euro, and on October 1, it was $1.25 per Euro.
Question 1: Determine the following:
1. The company's liabilities in US Dollars prior to payment 2. The amount of payment in US Dollars on October 13. The exchange gain or loss
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