What amount should betty include as a foreign currency

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Problem 1: On July 1, 2018, Betty Company lent P120,000 to a foreign supplier, evidenced by an interest bearing note due on July 1, 2019. The note is denominated in the currency of the borrower and was equivalent to 840,000 local currency units (LCU) on the loan date. The note principal was appropriately included at P140,000 in the receivables section of Betty's December 31, 2018 balance sheet. The note principal was repaid to Betty on the July 1, 2019 due date when the exchange rate was 8 LCU to P1. In its income statement for the year ended December 31, 2019, what amount should Betty include as a foreign currency transaction gain or loss?

Reference no: EM132756582

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