Detroit based Auto Corporation, purchased ancillaries from a Japanese firm on December 1, 20X8, for...
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Detroit based Auto Corporation, purchased ancillaries from a Japanese firm on December 1, 20X8, for 1,000,000 Yen, when the spot rate for Yen was $.0095. On December 31, 20X8, the spot rate stood at $.0096. On January 10, 20X9 Auto paid 1,000,000 Yen acquired at a rate of $.0094. Auto's income statements should report a foreign exchange gain or loss for the years ended December 31, 20X8 and 20X9 of:
a) 20X8: $0 ; 20X9 $0
b) 20X8 $100 loss; ; 20X9 $200 gain
c) 20X8 $0 ; 20X9 $100 gain
d)
20X8 $100 gain ; 20X9 $100 loss
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