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Business, 09.04.2020 04:14 ballin4534

On December 20, 2015, Butanta Company (a U. S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 185,000 ostras. Payment is received on January 10, 2016. Currency exchange rates for 1 ostra are as follows:

December 20, 2015 $ 1.28

December 31, 2015 1.25

January 10, 2016 1.21

a.)How does the fluctuation in exchange rates affect Butanta’s 2015 income statement?

The Ostra receivable decreases in dollar value resulting in a foreign exchange loss of in 2015

b.)How does the fluctuation in exchange rates affect Butanta’s 2016 income statement?

The Ostra receivable decreases in dollar value resulting in a foreign exchange loss of in 2016

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On December 20, 2015, Butanta Company (a U. S. company headquartered in Miami, Florida) sold parts t...
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