Solution-How much should Rama report in its income

How much should Rama report in its income statements

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Reference no: EM132995278

Question - Rama Corporation, bought inventory items from a supplier in Germany on November 5, 2016 for 100.000 marks, when the spot rate was $21. At Rama' December 31, 2016, year end, the spot rate was $20.5. On January 15, 2017, Rama bought 100,000 marks at the spot rate of $20.90 and paid the invoice. How much should Rama report in its income statements for 2016 and 2017 as foreign exchange transaction gain or (loss)?

Reference no: EM132995278

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How much should Rama report in its income statements

Reference no: EM132995278

Reference no: EM132995278

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