A U.S. company purchases a 3-month certificate of deposit from a Singapore bank at its face value of S$100,000 on December 1, 2023, when the spot rate is $0.72/S$. The certificate pays interest at an annual rate of 3 percent. On December 31, the company's year-end, the spot rate is $0.70/S$. On March 1, when the spot rate is $0.66/S$, the certificate of deposit matures, and the company receives principal and interest of S$100,750. At what amount does the company report the principal amount of its notes receivable at December 31, 2023?
A U.S. company purchases a 3-month certificate of deposit from a Singapore bank at its face value of S$100,000 on December 1, 2023, when the spot rate is $0.72/S$. The certificate pays interest at an annual rate of 3 percent. On December 31, the company's year-end, the spot rate is $0.70/S$. On March 1, when the spot rate is $0.66/S$, the certificate of deposit matures, and the company receives principal and interest of S$100,750. At what amount does the company report the principal amount of its notes receivable at December 31, 2023?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...
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