Mills Inc Had a Receivable from a Foreign Customer That Is

question 37

Multiple Choice

Mills Inc. had a receivable from a foreign customer that is due in the local currency of the customer (stickles) . On December 31, 2012, this receivable for §200,000 was correctly included in Mills' balance sheet at $132,000. When the receivable was collected on February 15, 2013, the U.S. dollar equivalent was $144,000. In Mills' 2013 consolidated income statement, how much should have been reported as a foreign exchange gain?

• A) $0.
• B) $36,000.
• C) $48,000.
• D) $10,000.
• E) $12,000.

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Definitions:

Back Translation

A method used in the translation process where a text is translated from one language to another and then translated back to the original language by a different translator to check for errors or inconsistencies.

Semantic Symbolism

The use of symbols and signs to represent ideas or concepts in a way that carries specific meanings within a particular cultural or social context.

Linguistic Exchange

The practice of sharing and learning languages through conversation with speakers of different languages, often as part of a cultural or educational exchange.

Economic Infrastructure

Refers to the basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation, communication systems, water, and power lines.