CPA · Question 48 · Area I: Financial Reporting
On December 1, Year 1, a US company purchased goods from a European supplier for 100,000 Euros, payable on February 1, Year 2. <br/>Exchange rates:<br/>Dec 1: 1 Euro = $1.10<br/>Dec 31: 1 Euro = $1.12<br/>Feb 1: 1 Euro = $1.08<br/><br/>What is the Foreign Currency Transaction Gain/Loss reported in Year 1 Net Income?
Answer options:
$2,000 Gain
$0
$2,000 Loss
$4,000 Gain
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