Car corp a us based company sold parts to a korean customer, Ask an Expert

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Car Corp. (a U.S. based company) sold parts to a Korean customer on December 16,2011, with payment of 10 million Korean won to be received on January 15, 2012. The following exchange rates applied:

Spot rate Forward Rate to Jan.15

December 16,2011 .00092 .00098

December 31, 2011 .00090 .00093

January 15, 2012 .00095 .00095

Assuming a forward contract was not entered into, what would be the net impact on Car Corp's 2011 income statement related to this transaction?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9967915

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