RWB Corporation, a U.S.based company, bought inventory from a German company on June 5 for 12,000 euros, when $1 was equal to 1.20 euros.The company settled its payable with 12,000 euros on August 4 when $1 was equal to 1.25 euros.RWB's measurement currency is the U.S.dollar.RWB Corporation:
A) should record the inventory for $9,600.
B) is exposed to an economic loss on the transaction.
C) has an economic gain on the transaction.
D) should record the inventory for 12,000 euros.
Correct Answer:
Verified
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