Final record value if two-transaction method is used

Reference no: EM13152144

A U.S. firm has purchased, for 50,000 FCs, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.80 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value if the two-transaction method is used?

a. $40,000

b. $38,000

c. $42,000

d. $50,000

Reference no: EM13152144

Questions Cloud

Determining amount in finished goods inventory : The CFO of Tierney Construction, Inc.has asked you to recalculate the following accounts and to report to him by the end of tomorrow. What should be the amount in the finished goods inventory at December 31, 2010?

Transacting business with a foreign vendor : Which of the following does not represent an exchange risk on an exposed position to a company transacting business with a foreign vendor?

E order processing overhead should be allocated to jackets : The company places raw materials orders 10 times per month, 2 times for raw materials for sweaters and the remainder for raw materials for jackets. How much of the order processing overhead should be allocated to jackets?

What is the number of moles of air : At 0.0oC, if the volume of air is 2.6 mL and the pressure of the atmosphere that day is 815 mmHg, what is the number of moles of air?

Final record value if two-transaction method is used : A U.S. firm has purchased, for 50,000 FCs, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.80 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value if the two-transaction met..

Divisions located in different countries : Discuss the issues and complications that may arise when multinational corporations conduct performance measurement and comparisons among divisions located in different countries.

How much output will firm produce in cournot equilibrium : The market demand curve is given by P = 100 - 4Q. Also, each firm has constant marginal cost equal to 28. There are no fixed costs. How much output will each firm produce in the Cournot equilibrium?

Spread between forward and spot rates : Which of the following factors influences the spread between forward and spot rates?

What is the pressure in a gas container : What is the pressure in a gas container that is connected to an open end u tube manometer if the pressure of the atmosphere is 742 torr and the level of mercury in the arm

User Account

All Pages