Determining income statement and foreign exchange


Problem: On November 15, 2003, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for 200,000 euros. The merchandise was shipped and invoiced on December 10, 2003. Chow paid the invoice on January 10, 2004. The spot rates for euros on the respective dates were:

November 15, 2003 $.4955
December 10, 2003 .4875
December 31, 2003 .4675
January 10, 2004 .4475

In Chow's December 31, 2003, income statement, the foreign exchange gain should be?

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Finance Basics: Determining income statement and foreign exchange
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