How is the transaction gain or loss reported in the foreign

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Reference no: EM133492666

Question: A US. company owns an 80% interest in a company located on Mars. Martian currency is called the Martian Credit. During the year the parent company sold inventory that had cost $24,000 to the subsidiary on account for $30,000 when the exchange rate was $05192. The subsidiary still held one-half of the inventory and had not paid the parent company for the purchase at the end of the ?scal period. The unsettled account is denominated in dollars. The exchange rate at the ?scal year-end was $04994. How is the transaction gain or loss reported in the foreign entity's ?nancial statements?

Reference no: EM133492666

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