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: 11/30/x1 12/31/ -rate $1.65 $1.6230-day rate 1.64 1.5960-day rate 1.63 1.56in its december 31, 20x1, income statement, what amount should hunt report as foreign exchange gain? a. $12,000b. $9,000c. $6,000d. $0

$ 9,000

Explanation:

Data provided;

Cost of the merchandise purchased = 300,000 British pounds

Spot exchange for 1 British pound on date of purchase = $ 1.65

Spot exchange for 1 British pound on date of statement = $ 1.62

Therefore,

The net foreign exchange gain per British pound = ($ 1.65 - $ 1.62) = $ 0.03

Hence,

the net foreign exchange gain on the cost of merchandise purchased

= Cost of the merchandise purchased × net foreign exchange gain per British pound

= 300,000 × $ 0.03

or

= $ 9000

answer: most likely c

explanation:

answer(b) revenue account which increases;