Question: Teal Inc a foreign corporation pays a dividend to its

Teal, Inc., a foreign corporation, pays a dividend to its shareholders on November 30. Red, Inc., a U.S. corporation and 7% shareholder in Teal, receives a dividend of 10,000K (a foreign currency). Pertinent exchange rates are as follows.
November 30 .......... .9K:$1
Average for year ......... .7K:$1
December 31 ......... 2K:$1
What is the dollar amount of the dividend received by Red, Inc.? Does Red have a foreign exchange gain or loss on receipt of the dividend?

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  • CreatedSeptember 09, 2015
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