On April 1, A.C. Corporation a calendar-year U.S. electronics manufacturer, buys 460000 Yen worth of computer chips from the Hidachi company paying 10 percent down, the balance to be paid in 3 months. Interest at 8 percent per annum is payable on the unpaid foreign currency balance. The U.S. dollars IJapanese Yen exchange rate on April 1 was $1.00= 100; on July 1 it was $1.00=104.5. What would be the translation gain or loss for this transaction?

On April 1, A.C. Corporation a calendar-year U.S. electronics manufacturer, buys 460000 Yen worth of computer chips from the Hidachi company paying 10 percent down, the balance to be paid in 3 months. Interest at 8 percent per annum is payable on the unpaid foreign currency balance. The U.S. dollars IJapanese Yen exchange rate on April 1 was $1.00= 100; on July 1 it was $1.00=104.5. What would be the translation gain or loss for this transaction?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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