Question: Post, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2013, Post correctly included this

Post, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2013, Post correctly included this receivable for 200,000 local currency units (LCU) in its balance sheet at $110,000. When Post collected the receivable on February 15, 2014, the U.S. dollar equivalent was $95,000. In Post's 2014 consolidated income statement, how much should it record as a foreign exchange loss?

i. $-0-.

ii. $10,000.

iii. $15,000.

iv. $25,000.

Step by Step Solution

★★★★★

3.42 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

iii 15000 The dollar value of the LCU re... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1129-B-A-C(1360).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Select the best answer for each of the following. 1. A forward contract is a hedge of an identifiable foreign currency commitment if (a) The forward contract is designated as, and is effective as, a...

The following information should be used for questions 1, 2, and 3. Select the best answers under each of two alternative assumptions: (a) The LCU is the functional currency and the translation...

1. Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? .:. 2. In accounting...

Brief, Inc., had a receivable from a foreign customer that is payable in the customers local currency. On December 31, 2023, Brief correctly included this receivable for 200,000 local currency units...

Post Inc had a receivable from a foreign customer that is a payable in the costumers local currency. On December 31, 2013, Post correctly included this receivable for 377,500 local currency units...

Brief Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2017, Brief correctly included this receivable for 267,500 local currency units...

Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2017. Brief correctly included this receivable for 267,500 local currency units...

Brief, Inc., had a receivable from a foreign customer that is payable in the customer's local currency. On December 31, 2017, Brief correctly included this receivable for 200,000 local currency units...

Consider the following two mutually exclusive projects: Sketch the NPV profiles for X and Y over a range of discount rates from zero to 25 percent. What is the crossover rate for these twoprojects?...

Assume an investor's preferences can be described by a utility function which can be expressed in terms of wealth as U(W) = 20W -.5W?. The investor is considering 3 investments with the following...

A Question 94 Which nursing action would be required for providing culturally congruent transcultural care to an Asian-American male patient and his family combining both native and American...

A U.S. manufacturer is planning to open a plant in Sweden. What should this firm know about the quality of work life in Sweden that would have a direct effect on job design in the plant? Give an...

On December 31, 2014, PanTech Company invests $20,000 in SoftPlus, a variable interest entity. In contractual agreements completed on that date, PanTech established itself as the primary beneficiary...

On January 1, 2014, Access IT Company exchanged $1,000,000 for 40 percent of the outstanding voting stock of Net Connect. Especially attractive to Access IT was a research project underway at Net...

Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parents interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other...

2 - 7 : ABC Corporation expects to earn $ 2 0 0 , 0 0 0 at the end of the year and projects a growth in earnings of 5 percent per year. If k is 1 0 percent, what is the present value of the earnings...

2) Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the...

Thompson, Ine. In its 2011 income statement, Thompson Inc. reported net income of $1,260 and depreciation expense of $270. On its 2012 income statement, the company reported net income of $2,420 and...