Jackson Corp. (a U.S.-based company)sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied: Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.'s 2021 income statement related to this transaction?
A)$600 (gain).
B)$600 (loss).
C)$400 (gain).
D)$400 (loss).
E)$0

Question

Jackson Corp. (a U.S.-based company)sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied:  Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.'s 2021 income statement related to this transaction?
A)$600 (gain). 
B)$600 (loss). 
C)$400 (gain). 
D)$400 (loss). 
E)$0

Quizplus · Accepted Answer

The Answer of Jackson Corp. (a U.S.-based company)sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied:  Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.'s 2021 income statement related to this transaction?
A)$600 (gain). 
B)$600 (loss). 
C)$400 (gain). 
D)$400 (loss). 
E)$0