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Greco, Inc

question 7

Multiple Choice

Greco, Inc. a U.S. corporation, bought machine parts from Franco Company of Germany on March 1, 2017, for 70,000 marks, when the spot rate for marks was $0.5395. Greco's year-end was March 31, 2017, when the spot rate for marks was $0.5445. Greco bought 70,000 marks and paid the invoice on April 20, 2017, when the spot rate was $0.5495. How much should be shown in Greco's income statements as foreign exchange (transaction) gain or loss for the years ended March 31, 2017 and 2018?


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