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Question - Let's suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60 days. You sold the product in the US market at $400 in cash on Dec 15, 2018. The company's fiscal year ends on Dec 31. You paid to your German supplier on Feb 1, 2019.
Below, please find the exchange rate information:
Dec 1, 2018: 2.0 €/$.
Dec 31, 2018: 1.5 €/$.
Feb 1, 2019: 3.0 €/$.
What was gross profit for 2018 and 2019, respectively?
a. $100, $0
b. $300, $100
c. $0, $250
d. $250, $0
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