On 1 June 20X0, Led Pty Ltd Sold a Machine $\quad$

question 6

Multiple Choice

On 1 June 20X0, Led Pty Ltd sold a machine to an overseas company for ¥3,000,000. Payment was received on 14 July 20X0. Led’s reporting date is 30 June, and its functional currency is A$. The risks and benefits relating to the machine transferred to the purchaser on delivery. The following exchange rate applied:
1 June 20X0 $\quad$$\quad$ ¥1.00 = $\quad$ A$0.20
30 June 20X0 $\quad$$\quad$ ¥1.00 = $\quad$ A$0.18
14 July 20X0 $\quad$$\quad$ ¥1.00 = $\quad$ A$0.19
-What was the foreign currency exchange difference recognised for the reporting period ending 30 June 20X0 by Led Ltd on the transaction?

• A)$30,000 FC exchange difference revenue
• B)$30,000 FC exchange difference expense
• C)$60,000 FC exchange difference revenue
• D)$60,000 FC exchange difference expense

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Definitions:

Sales Tax

A percentage paid to the government of sales on products or services.

Square Foot

A unit of area measurement equal to a square measuring one foot on each side.

Installation Fee

An Installation Fee is a one-time charge for setting up a service or equipment, commonly applied in telecommunications, utilities, and appliance purchases.

Insulated

Protected with a material that prevents heat, sound, or electricity from escaping or entering.