On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The merchandise was shipped and invoiced on December 10, 20X3. Chow paid the invoice on January 10, 20X4. The spot rates for euros on the respective dates were

In Chow’s December 31, 20X3, income statement, the foreign exchange gain is

a. $9,600.

b. $8,000.

c. $4,000.

d. $1,600.

Transcribed Image Text:

November 15, 2013 $0.4955 December 10, 2013 0.4875 December 31, 20x3 0.4675 January 10, 20x4 0.4475