What amount should be included as a foreign exchange


Grete Corp. had the following foreign currency transactions during 2015:

Purchased merchandise from a foreign supplier on January 20, 2015, for the U.S. dollar equivalent of $68,000.

On September 1, 2015, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lender's local currency on September 1, 2016. On December 31, 2015 the U.S. dollar equivalent of the principal amount was $320,000.

In Grete's 2015 income statement, what amount should be included as a foreign exchange loss?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: What amount should be included as a foreign exchange
Reference No:- TGS02566337

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)