Detroit Based Auto Corporation,purchased Ancillaries from a Japanese Firm on December

question 15

Multiple Choice

Detroit based Auto Corporation,purchased ancillaries from a Japanese firm on December 1,2008,for 1,000,000 Yen,when the spot rate for Yen was $.0095.On December 31,2008,the spot rate stood at $.0096.On January 10,2009 Auto paid 1,000,000 Yen acquired at a rate of $.0094.Auto's income statements should report a foreign exchange gain or loss for the years ended December 31,2008 and 2009 of:

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Cross-cultural Preparation

Training and education intended to help individuals understand and adapt to cultural differences in international settings.

Paid Vacation

A benefit offered by employers that allows employees to take time off work while still receiving their regular pay.

National Health Insurance

A government-sponsored system that provides health insurance coverage to all citizens.

Pensions

Retirement plans funded either by employers or governments, providing a steady income after retirement.