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What would be the amount of foreign exchange gain or loss

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Question - On July 1, 2009 Canuck Ltd. sold inventory to its main foreign customer Euro Ltd., at a price of 10,000 Euros. Canuck Ltd.'s year end is on July 31. The exchange rates in effect at each of these dates are:

Transaction Date: July 1, 2009: 1 Euro = $0.920 CDN.

Year End Date: July 31, 2009: 1 Euro = $0.910 CDN.

Settlement Date: Aug. 31, 2009: 1 Euro = $0.905 CDN.

1. What would be the amount of the foreign exchange gain or loss adjustment recorded at the Balance Sheet date?

a. A $150 Exchange Gain.

b. A $150 Exchange Loss.

c. A $100 Exchange Gain.

d. A $100 Exchange Loss.

2. What is the amount received from Euro Ltd. by Canuck Inc. at settlement?

a. $10,000 CDN.

b. $9,100 CDN.

c. $9,050 CDN.

d. $9,200 CDN.

Reference no: EM133173899

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