On March 1, Forward Import-Export Company purchased merchandise costing 70,100 Mexican pesos. Payment was due, in pesos, on June 1. The exchange rates of pesos for $1 were as follows: March 1 $1 = 10.9 pesos June 1 $1 = 11.4 pesos Round all answers to the nearest dollar. Required: 1. What is the liability in dollars on March 1? 2. What is the liability in dollars on June 1? 3. If Forward pays on June 1, is there an exchange gain or loss? If so, how much is it?

On March 1, Forward Import-Export Company purchased merchandise costing 70,100 Mexican pesos. Payment was due, in pesos, on June 1. The exchange rates of pesos for $1 were as follows: March 1 $1 = 10.9 pesos June 1 $1 = 11.4 pesos Round all answers to the nearest dollar. Required: 1. What is the liability in dollars on March 1? 2. What is the liability in dollars on June 1? 3. If Forward pays on June 1, is there an exchange gain or loss? If so, how much is it?

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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