The Simpson Corporation is calculating their adjusted balance sheet into U.S. Dollars. The exchange rate at the beginning of the year was $1 Euro = $1 U.S. dollar. The current exchange rate is .80 Euros to $1.00. Net Income for the year was zero. How much is the accounting gain/loss due to the exchange rate change?

Beginning Balance Sheet:

Assets = 3,000 Euros
Equity = 1,500 Euros
Liabilities = 1,500 Euros

Answer rating: 100% (QA)

To calculate the accounting gainloss due to the exchange rate change we need to compare the value of ... View the full answer