Wild, Inc. sold merchandise for 500,000 FC to a foreign vendor on November 30, 20X5. Payment in foreign currency is due January 31, 20X6. Exchange rates to purchase 1 foreign currency unit are as follows:

In the year in which the sale was made, 20X5, what amount should Wild report as foreign exchange gain/loss from this transaction?

a.$25,000

b.$20,000

c.$5,000

d.$0

Transcribed Image Text:

Spot 30 day 60 day Nov. 30, 20X5 $1.49 $1.48 $1.46 Dec. 31, 20X5 $1.45 $1.43 $1.41 Jan. 31, 20X6 $1.44 $1.43 $1.42 Spot 30 day 60 day Nov. 30, 20X5 $1.49 $1.48 $1.46 Dec. 31, 20X5 $1.45 $1.43 $1.41 Jan. 31, 20X6 $1.44 $1.43 $1.42

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