On September 1,20X1,Brady Corp.entered into a foreign exchange contract for speculative purposes by purchasing 50,000 deutsche marks for delivery in 60 days.The rates to exchange $1 for 1 deutsche mark follow:

In its September 30,20X1 income statement,what amount should Brady report as foreign exchange loss?
A) $1,000
B) $2,500
C) $1,500
D) $500

Question

On September 1,20X1,Brady Corp.entered into a foreign exchange contract for speculative purposes by purchasing 50,000 deutsche marks for delivery in 60 days.The rates to exchange $1 for 1 deutsche mark follow:

In its September 30,20X1 income statement,what amount should Brady report as foreign exchange loss?

In its September 30,20X1 income statement,what amount should Brady report as foreign exchange loss?
A) $1,000 
B) $2,500 
C) $1,500 
D) $500

Quizplus · Accepted Answer

The Answer of On September 1,20X1,Brady Corp.entered into a foreign exchange contract for speculative purposes by purchasing 50,000 deutsche marks for delivery in 60 days.The rates to exchange $1 for 1 deutsche mark follow:

In its September 30,20X1 income statement,what amount should Brady report as foreign exchange loss?
A) $1,000 
B) $2,500 
C) $1,500 
D) $500