On July 1, 2020, Chester Aguilar acquires 1,000 shares of a foreign company at 10 Foreign Currency units (FC, hereafter)per share. He acquired the funds for this purchase when FC1 = $1.48, a value that did not change prior to the date on which he purchased the shares. He sells the 1,000 shares December 1, 2020 for FC12 per share. On this date the exchange rate is FC1 = $1.46. What is the effect of the sale transaction on Chester's 2020 Net Income For Tax Purposes?

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The Answer of On July 1, 2020, Chester Aguilar acquires 1,000 shares of a foreign company at 10 Foreign Currency units (FC, hereafter)per share. He acquired the funds for this purchase when FC1 = $1.48, a value that did not change prior to the date on which he purchased the shares. He sells the 1,000 shares December 1, 2020 for FC12 per share. On this date the exchange rate is FC1 = $1.46. What is the effect of the sale transaction on Chester's 2020 Net Income For Tax Purposes?

On July 1, 2020, Chester Aguilar Acquires 1,000 Shares of a Foreign