On September 1,2017,Mudd Plating Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days.The relevant exchange rates are as follows: The second forward contract was strictly for speculation.On September 30,2017,what amount of foreign currency transaction gain should Mudd Plating report in income?
A)$0.
B)$2,500.
C)$5,000.
D)$10,000.

Question

On September 1,2017,Mudd Plating Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days.The relevant exchange rates are as follows:  The second forward contract was strictly for speculation.On September 30,2017,what amount of foreign currency transaction gain should Mudd Plating report in income?
A)$0. 
B)$2,500. 
C)$5,000. 
D)$10,000.

Quizplus · Accepted Answer

The Answer of On September 1,2017,Mudd Plating Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days.The relevant exchange rates are as follows:  The second forward contract was strictly for speculation.On September 30,2017,what amount of foreign currency transaction gain should Mudd Plating report in income?
A)$0. 
B)$2,500. 
C)$5,000. 
D)$10,000.

On September 1,2017,Mudd Plating Company Entered into Two Forward Exchange