Sun Company, a U S corporation, has an account payable of $200,000 denominated in Canadian dollars If the direct exchange rate increases, will Sun experience a foreign currency transaction gain or loss on this payable ...

If the direct exchange rate increases the Sun Company will experienc ...

Sun Company, a U.S. corporation, has an account payable of $200,000 denominated in Canadian dollars. If the

Question:

Sun Company, a U.S. corporation, has an account payable of $200,000 denominated in Canadian dollars. If the direct increases, will Sun experience a foreign currency transaction gain or loss on this payable?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...