Foreign currency transaction loss

Reference no: EM13116569

On Sept 22, Year 4, Yumi Corp, purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency. On that date, the spot rate was $.55. Yumi paid the bill in full on March 20, year 5, when the spot rate was $.65. The spot rate was $.70 on December 31, year 4. What amount should Yumi report as a foreign currency transaction loss in its income statement for the year ended Dec 31, year 4?

a) 0

b) 500

c) 1000

d) 1500

Reference no: EM13116569

Questions Cloud

How many milliliters of coffee can be obtained : A pound of coffee beans yields 30 cups of coffee (4 cups = 1 ). How many milliliters of coffee can be obtained from 1.0 of coffee beans.

Probability that selected students are graduate and female : Of those female students, 85% of them will graduate, whereas 90% of males will successfully complete the same programme. If a new TESL student is chosen at random, what is the probability that: They graduate and they are female?

Investments and exchange rate : Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4% annualized return and a 1% quarterly (90-day) return.

Explain why overhead cost related to website optimization : Explain why the overhead cost related to website optimization was first divided into two categories (unframed prints and framed prints) and then allocated based on number of prints

Foreign currency transaction loss : On Sept 22, Year 4, Yumi Corp, purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency.

Whats the probability that both the twins : Suppose that a husband and wife are both heterozygous for a recessive allele for albinism. If they have dizygotic (two-egg) twins, whats the probability that both the twins will have the same phenotype for pigmentation?

Illustrate what is the magnitude of the torque : His arm is 70 cm long and has a mass of 4.0 kg. Illustrate what is the magnitude of the torque about his shoulder if he holds his arm straight out to his side, parallel to the floor?

Illustrate what fractional increase in the tension : Illustrate what fractional increase in the tension of one wire lead to the occurrence of 6 beats/s when both wires oscillate simultaneously?

Overview of us publicly traded company : Provide a detailed overview of the U.S. publicly traded company, Priceline. This should be 3 pages. Evaluate the company's vulnerability to current financial threats, such as a recession, higher interest rates, and global competition.

User Account

All Pages