Solved

On April 1, 2017, Manatee Company Entered into Two Forward

Question 24

Multiple Choice

On April 1, 2017, Manatee Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are as follows: On April 1, 2017, Manatee Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are as follows: The second forward contract was strictly for speculation. On April 30, 2017, what amount of foreign currency transaction gain should Manatee report in income. A) $0. B) $3,000. C) $9,000. D) $12,000. The second forward contract was strictly for speculation. On April 30, 2017, what amount of foreign currency transaction gain should Manatee report in income.


A) $0.
B) $3,000.
C) $9,000.
D) $12,000.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q19: During 2017, a U.S. company purchased inventory

Q20: An indirect exchange rate quotation is one

Q21: Kettle Company purchased equipment for 375,000 British

Q22: On November 1, 2016, Jagged Company sold

Q23: A transaction gain or loss on a

Q25: A discount or premium on a forward

Q26: Accounting for a foreign currency transaction involves

Q27: A transaction gain or loss is reported

Q28: On October 1, 2016, Philly Company purchased

Q29: On December 1, 2016, Dorn Corporation agreed