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    Foreign Exchange Transaction

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    Post Inc, had a receivable from a foregn customer that is payable in the customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local currency units (LCU) int its balance sheet at $110,000. When Post collected the receivable on Feb 15, 2010, the U.S. dollar equivalent was $95,000. In Post's 2010 consolidated income statement, how much should it report as a foreign exchange loss?

    A) $0
    b) $10,000
    c) $15,000
    d) $25,000

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    https://brainmass.com/business/international-finance/foreign-exchange-transaction-239790

    Solution Preview

    Post Inc, had a receivable from a foregn customer that is payable in the customer's loca currency. On Dec 31, 2009, Post correctly included this receivable for 200,000 local currency units (LCU) int its ...

    Solution Summary

    This solution identifies how much foreign exchange loss should be reported with a justification.

    $2.19

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