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what amount should Madison Paving report as a foreign exchange transaction gain:

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Madison Paving Company purchased equipment for 450,000 British pounds from a supplier in London on July 7, 2014. Payment in British pounds is due on Sept. 7, 2014. The exchange rates to purchase one pound are as follows;July 7 August 31, (year-end) September 7;Spot-rate 2.08 2.05 2.04;30-day rate 2.07 2.03 --;60-day rate 2.06 1.99 --;On its August 31, 2014 income statement, what amount should Madison Paving report as a foreign exchange transaction gain

 

Paper#20849 | Written in 18-Jul-2015

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