Note: This is a Kaplan CPA Review Question
Hunt Co. purchased merchandise for 300,000 British pounds from a vendor in London on November 30, 20X1. Payment in British pounds was due on January 30, 20X2. The exchange rates to purchase one pound were as follows:
In its December 31, Year One, income statement, what amount should Hunt report as foreign exchange gain?
A) $9,000
B) $12,000
C) $6,000
D) $0

Question

Note: This is a Kaplan CPA Review Question
Hunt Co. purchased merchandise for 300,000 British pounds from a vendor in London on November 30, 20X1. Payment in British pounds was due on January 30, 20X2. The exchange rates to purchase one pound were as follows: 
In its December 31, Year One, income statement, what amount should Hunt report as foreign exchange gain?
A) $9,000 
B) $12,000 
C) $6,000 
D) $0

Quizplus · Accepted Answer

The Answer of Note: This is a Kaplan CPA Review Question
Hunt Co. purchased merchandise for 300,000 British pounds from a vendor in London on November 30, 20X1. Payment in British pounds was due on January 30, 20X2. The exchange rates to purchase one pound were as follows: 
In its December 31, Year One, income statement, what amount should Hunt report as foreign exchange gain?
A) $9,000 
B) $12,000 
C) $6,000 
D) $0

Note: This Is a Kaplan CPA Review Question