Clark Stone Purchases Raw Material from Its Foreign Supplier, Rinne

question 35

Multiple Choice

Clark Stone purchases raw material from its foreign supplier, Rinne Clay, on May 8. Payment of 1,500,000 foreign currency units (FC) is due in 30 days. May 31 is Clark's fiscal year-end. The pertinent exchange rates were as follows: How much US $ will it cost Clark to finally pay the payable on June 7?

• A)$1,850,000.
• B)$1,500,000.
• C)$1,770,000.
• D)$1,740,000.
• E)$1,680,000.

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Definitions:

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