Jackson Corp

Multiple Choice

Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied: Assuming a forward contract was not entered into, what would be the net impact on Jackson Corp.'s 2021 income statement related to this transaction?

A) $600 (gain) .
B) $600 (loss) .
C) $400 (gain) .
D) $400 (loss) .
E) $0