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Graha PravesOn March 1, Friedle Import-Export Company purchased merchandise from a Mexican firm costing 70,100 pesos. Payment was due, in pesos, on June 1. The exchange rates of pesos for $1 were as follows:
March 1 $1 = 10.9 pesosJune 1 $1 = 11.4 pesos
Round all answers to the nearest dollar.
Required
1. What is the liability in dollars on March 1?
2. What is the liability in dollars on June 1?
3. If Friedle pays on June 1, is there an exchange gain or loss? If so, how much is it?
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