@mb0363 The answer should be D. $7500 gain.
You need to mark to market. You started with them owing you $50,000 (250,000 x 0.20). At December 31 you need to mark to market on your account. Since exchange rate is now .19 they owe you $47,500 (250,000 x 0.19) and this is your Due From account. Think of this as your new starting point.
Now on 2/2 the exchange rate is .22. They now owe you $55,000 (250,000 x 0.22)
55,000 – 47,500 = $7,500
AUD - July 2014 - 76
REG - August 2014 - 82
FAR - November 2014 - 78
BEC - January 2015 - 81
DONE!!!!
Used Becker online. Who needs a text when you can burn your eyes out staring at the screen for months on end?
"Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you're hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done!"
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