On April 1, A.C. Corporation a calendar-year U.S. electronics manufacturer, buys 825000 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 /Japanese Yen exchange rate on April 1 was $1.00= 103.5; on July 1 it was $1.00=103.5. 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 825000 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 /Japanese Yen exchange rate on April 1 was $1.00= 103.5; on July 1 it was $1.00=103.5. What would be the translation gain or loss for this transaction?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter9: Taxation Of International Transactions

Section: Chapter Questions

Problem 27P

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14. On April 1, A.C. Corporation a calendar-year U.S. electronics manufacturer,buys 715000 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 /Japanese Yen exchange rate on April 1 was $1.00= 108; on July 1 it was $1.00=103.5.What would be the the cash payment by the end of this transaction?
On April 1, A.C. Corporation a calendar-year U.S. electronics manufacturer, buys 830000 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 /Japanese Yen exchange rate on April 1 was $1.00= 107.5; on July 1 it was $1.00=101.5. What would be the the cash payment by the end of this transaction?
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