On September 22, 20x2, Yellow Corp. purchased merchandise from an unaffiliated foreign company. It paid...
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Accounting
On September 22, 20x2, Yellow Corp. purchased merchandise from an unaffiliated foreign company. It paid 10,000 units of the foreign company's local currency. On that date, the spot rate was $0.55. Yellow paid the bill in full on March 20, 20x3, when the spot rate was $0.65. The spot rate was $0.70 on December 31, 20x2. Which amount should Yellow Corp. report as a foreign currency transaction loss in its income statement for the year ended December 31, 20x2?
a. $500
b. $0
d. $1,000
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