A U S corporation imported merchandise from a British company for 1,000 when the spot rate was $1 45 It issued financial statements when the current rate was $1 47, and it paid for the merchandise when the spot rate was $1 46 What amount of exchange gain or loss will be included in the U S Corporat...

There will be a 20 exchange loss in the period of purchase and a ...

A U.S. corporation imported merchandise from a British company for 1,000 when the spot rate was $1.45.

Question:

A U.S. imported merchandise from a British company for £1,000 when the spot rate was $1.45. It issued when the current rate was $1.47, and it paid for the merchandise when the spot rate was $1.46. What amount of exchange gain or loss will be included in the U.S. Corporation’s income statements in the period of purchase and in the period of settlement?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...