Brisco Bricks purchases raw material from its foreign supplier, Bolivian Clay, on May 8. Payment of 2,000,000 foreign currency units (FC) is due in 30 days. May 31 is Brisco's fiscal year-end. The pertinent exchange rates were as follows:

How much US $ will it cost Brisco to finally pay the payable on June 7?

MULTIPLE CHOICE

$1,666,667

$2,440,000

$2,520,000

$2,500,000

$2,400,000

Transcribed Image Text:

May 8 May 31 Jun. 7 Spot rate: Spot rate: Spot rate: $1.25 $ 1.26 $ 1.20 May 8 May 31 Jun. 7 Spot rate: Spot rate: Spot rate: $1.25 $ 1.26 $ 1.20

Answer rating: 100% (QA)

On May 8 Bolivian Clays payment of 2000000 foreign currency units ... View the full answer