ACC 577 help A Guide to career/uophelp.com ACC 577 help A Guide to career/uophelp.com | Page 10

Question 3
On September 1, 2008, Bain Corp. received an order for equipment from
a foreign customer for 300,000 local currency units (LCU) when the U.S.
dollar equivalent was $96,000. Bain shipped the equipment on October
15, 2008, and billed the customer for 300,000 LCU when the U.S. dollar
equivalent was $100,000. Bain received the customer's remittance in full
on November 16, 2008, and sold the 300,000 LCU for $105,000. In its
income statement for the year ended December 31, 2008, Bain should
report a foreign exchange gain of:
Question 4
The following information is relevant to the computation of Chan Co.'s
earnings per share to be disclosed on Chan's income statement for the
year ending December 31: Chan has no preferred stock outstanding, and
no other convertible securities. What amount should be used as the
numerator in the fraction used to compute Chan's diluted earnings per
share assuming that the bonds are dilutive securities?
Question 5
Fay Corp. had a realized foreign exchange loss of $15,000 for the year
ended December 31, 2005 and must also determine whether the
following items will require year-end adjustment: Fay had an $8,000
loss resulting from the translation of the accounts of its wholly owned
foreign subsidiary for the year ended December 31, 2005. Fay had an
account payable to an unrelated foreign supplier payable in the supplier's
local currency. The U.S. dollar equivalent of the payable was $64,000 on
the October 31, 2005 invoice date, and it was $60,000 on December 31,
2005. The invoice is payable on January 30, 2006. In Fay's 2005
consolidated income statement, what amount should be included as
foreign exchange loss?