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Car Corp (A U

Question 66

Multiple Choice

Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2013, with payment of 10 million Korean won to be received on January 15, 2014. The following exchange rates applied: Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2013, with payment of 10 million Korean won to be received on January 15, 2014. The following exchange rates applied: Assuming a forward contract was entered into on December 16, what would be the net impact on Car Corp.'s 2014 income statement related to this transaction? A) $500 (gain) . B) $303 (gain) . C) $300 (gain) . D) $300 (loss) . E) $0. Assuming a forward contract was entered into on December 16, what would be the net impact on Car Corp.'s 2014 income statement related to this transaction?


A) $500 (gain) .
B) $303 (gain) .
C) $300 (gain) .
D) $300 (loss) .
E) $0.

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