Solution-What amount should be included as a foreign

What amount should be included as a foreign exchange loss

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Reference no: EM132919040

Beth had the following foreign currency transactions during 2015:

Purchased merchandise from a foreign supplier on January 20,2015 for the Philippine peso equivalent of P60,000 and paid the invoice on April 20, 2015 at the Philippine peso equivalent of P68,000
On September 1, 2015, borrowed the Philippine peso equivalent of P300,000 evidenced by a note that is payable in the lender's local currency on September 1, 2016. On December 31, 2015, the Philippine peso equivalent of the principal amount was P320,000.

Problem 1: In Beth's 2015 income statement, what amount should be included as a foreign exchange loss?

Group of answer choices

Option 1: P28,000

Option 2: P22,000

Option 3: P20,000

Option 4: P4,000

Reference no: EM132919040

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What amount should be included as a foreign exchange loss

Reference no: EM132919040

Reference no: EM132919040

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