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Mint Corporation has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On November 2, 20X8, Mint sold confectionary items to a foreign company at a price of LCU 23,000 when the direct exchange rate was 1 LCU = $1.08. The account has not been settled as of December 31, 20X8, when the exchange rate has increased to 1 LCU = $1.10. The foreign exchange gain or loss on Mint's records at year-end for this transaction will be:

A. $460 lossB. $387 lossC. $387 gainD. $460 gain

1 Answer

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Answer:A$460 loss

Step-by-step explanation:

The value of the $ compare to LCU has fallen by $0.02 ( 1.08 to $1.10)

multiply by LCU $23000

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