On July 1, 2020, a Filipino entity whose functional currency is Philippine Peso purchased on accountinventories at a cost of $100 to be paid on June 30, 2021. On October 1, 2020, the said inventories weresoid on account by the Filipino entity at a selling price of $150 to be collected on September 30, 2021.The following direct foreign exchange rates are given:July 1,2020October 1, 2020December 31, 2020Buying SpotP40P42P45Selling SpotP50P48P5256. What is the gross profit to be reported by the Filipino entity for the year ended December 31, 2020?a. 1,300b. 2,100c. 2,400d. 3,20057. what is the net foreign currency gain or loss for the year ended December 31, 2020?a. 150 net gainb. 250 net gainc. (350) net lossd. (50) net loss

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56. What is the gross profit to be reported by the Filipino entity for the year ended December 31, 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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