Solved

Assume That on January 15, 2020, Ariel Agrees to Purchase

Question 80

Multiple Choice

Assume that on January 15, 2020, Ariel agrees to purchase US$500,000 for C$550,000 for delivery on January 15, 2021. The exchange rate at its December 31 year-end is US$1 = C$0.95 and the January 15, 2021 the exchange rate is US$1 = C$0.97. What is the foreign exchange gain or loss recognized on January 15, 2020?


A) 0
B) $65,000 loss.
C) $75,000 gain.
D) $75,000 loss.

Correct Answer:

verifed

Verified

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

Related Questions

Q6: Which of the following is an example

Q45: Which method is used under IFRS to

Q52: Which is a derivative on the company's

Q75: McMillan Manufacturing issued 60,000 stock options to

Q78: What are the two exceptions to the

Q79: Briefly explain the difference between a "forward"

Q81: What is a "put" option?<br>A)A contract that

Q81: A company issued 95,000 preferred shares and

Q83: Explain the conceptual meaning of the difference

Q84: O'Neil Motor Parts issued 110,000 stock options