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The Simpson Corporation is calculating their adjusted balance sheet into U.S. Dollars. The exchange rate at the beginning of the year was $1 Euro $1 U.S. dollar. The current exchange rate is 80 Euros to $100.
Problem 1: Net income for the year was zero. How much is the accounting gain/loss due to the exchange rate changes?
Beginning Balance sheet:
Assets= 3,000 EurosEquity= 1,500 EurosLiabilities= 1,500 Euros
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