The New York Pasta Company invested $8.5 million in a new plant in Mexico when the exchange rate was 8 pesos to the dollar. At the end of the year, the rate was 9.5 pesos to the dollar. What was the exchange rate gain or loss at year end? What kind of exchange rate gain or loss was it? What was the tax impact if New York's marginal tax rate is 40%?

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The Answer of The New York Pasta Company invested $8.5 million in a new plant in Mexico when the exchange rate was 8 pesos to the dollar. At the end of the year, the rate was 9.5 pesos to the dollar. What was the exchange rate gain or loss at year end? What kind of exchange rate gain or loss was it? What was the tax impact if New York's marginal tax rate is 40%?

The New York Pasta Company Invested $8