Homework Answers
| Correct option is: $40,000 gain | ||||
| Workings: | ||||
| Amount received on April 1, 2019 (at spot rate) | = | US $ 800000 X 1.03 | = | $ 8,24,000 |
| Amount recorded on March 1, 2019 | = | US $ 800000 X 0.98 | = | $ 7,84,000 |
| Exchange gain | = | $ 40,000 | ||
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