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Item $21$

McCarthy, Incorporated's Brazilian subsidiary borrowed $108,000$ euros on January $1,2024.$ Exchange rates between the Brazilian real $($BRL$)$ and euro $()$ and between the U$.$S$.$ dollar $($$$)$ and BRL are as follows:

$$BRL per $$US$ per BRLJanuary $1,2024$BRL $4\mathrm{.}20$$ $0\mathrm{.}28$Average, $2024$BRL $4\mathrm{.}30$$ $0\mathrm{.}25$December $31,2024$BRL $4\mathrm{.}60$$ $0\mathrm{.}20$

Required:

Determine the amount at which the Brazilian subsidiary$$s euro note payable should be reported on McCarthy$$s December $31,2024,$ consolidated balance sheet?

Determine the amount of foreign exchange gain or loss that should be reflected in McCarthy$$s $2024$ consolidated net income.

McCarthy, Incorporated's Brazillan subsidlary borrowed $108,000$ euros on January $1,2024.$ Exchange rates between the Brazillan real $($BRL$)$ and euro $(\backslash (\backslash ))$ and between the U$.$S$.$ dollar $(\backslash$$$)$ and BRL are as follows:

Required:

a$.$ Determine the amount at which the Brazillan subsidlary's euro note payable should be reported on McCarthy's December $31,2024,$ consolidated balance sheet?

b$.$ Determine the amount of forelgn exchange gain or loss that should be reflected in McCarthy's $2024$ consolidated net income.

Gain

Loss