Hugh, Inc.purchased merchandise for 300,000 FC from a British vendor on November 30, 2018.Payment in British pounds is due January 31, 2019.Exchange rates to purchase 1 FC is as follows: ?

$$\begin{array} { l c c }
& \text { Nov. 30, 2018 } & \text { Dec. } 31,2018 \
\hline \text { Spot } & \$ 1.65 & \$ 1.62 \
30 \text { day } & \$ 1.64 & \$ 1.59 \
60 \text { day } & \$ 1.63 & \$ 1.56
\end{array}$$ In the December 31, 2018 income statement, what amount should Hugh report as foreign exchange gain from this transaction?

Question

Hugh, Inc.purchased merchandise for 300,000 FC from a British vendor on November 30, 2018.Payment in British pounds is due January 31, 2019.Exchange rates to purchase 1 FC is as follows: ?

$$\begin{array} { l c c } 
& \text { Nov. 30, 2018 } & \text { Dec. } 31,2018 \
\hline \text { Spot } & \$ 1.65 & \$ 1.62 \
30 \text { day } & \$ 1.64 & \$ 1.59 \
60 \text { day } & \$ 1.63 & \$ 1.56
\end{array}$$ In the December 31, 2018 income statement, what amount should Hugh report as foreign exchange gain from this transaction?

Quizplus · Accepted Answer

The Answer of Hugh, Inc.purchased merchandise for 300,000 FC from a British vendor on November 30, 2018.Payment in British pounds is due January 31, 2019.Exchange rates to purchase 1 FC is as follows: ?

$$\begin{array} { l c c } 
& \text { Nov. 30, 2018 } & \text { Dec. } 31,2018 \
\hline \text { Spot } & \$ 1.65 & \$ 1.62 \
30 \text { day } & \$ 1.64 & \$ 1.59 \
60 \text { day } & \$ 1.63 & \$ 1.56
\end{array}$$ In the December 31, 2018 income statement, what amount should Hugh report as foreign exchange gain from this transaction?

Hugh, Incpurchased Merchandise for 300,000 FC from a British Vendor on on November