On December 5, 20X3, Goose Corporation, a US firm, bought inventory items from Grebes Corporation of...

 

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On December 5, 20X3, Goose Corporation, a US firm, bought inventory items from Grebes Corporation of Norway for 1,000,000 Norwegian krone when the spot rate for krone was $0.168. At Goose's December 31, year-end, the spot rate was $0.167. On January 4, 20X4, Goose purchased 1,000,000 krone for $167,500 and paid the invoice. How much gain or (loss) did Goose report in its 20X3 and 20X4, respectively, income statements? O a. $0 and $500 O b. $(1,000) and $500 c. $O and ($500) O d. $1,000 and ($500) On December 5, 20X3, Goose Corporation, a US firm, bought inventory items from Grebes Corporation of Norway for 1,000,000 Norwegian krone when the spot rate for krone was $0.168. At Goose's December 31, year-end, the spot rate was $0.167. On January 4, 20X4, Goose purchased 1,000,000 krone for $167,500 and paid the invoice. How much gain or (loss) did Goose report in its 20X3 and 20X4, respectively, income statements? O a. $0 and $500 O b. $(1,000) and $500 c. $O and ($500) O d. $1,000 and ($500)

Answer rating: 100% (QA)

d 1000 and 500 Workings Account payable Dec 0... View the full answer