Question: On April 1 0 , 2 0 1 9 , when the spot rate is $ 1 . 1 0 / , a U .

On April 10,2019, when the spot rate is $1.10/, a U.S. company sells merchandise to a customer in Italy. LO 1 Soy
The spot rate is $1.11/ on June 30, the companys year-end. Payment of 100,000 is received on August 10, @
2019, when the spot rate is $1.08/. What is the effect on fiscal 2019 and 2020 income?
Fiscal 2019 Fiscal 2020
a. $1,000 exchange loss $3,000 exchange gain
b. Noeffect $2,000 exchange loss
c. Noeffect $2,000 exchange gain
d. $1,000 exchange gain $3,000 exchange loss

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