Question On November 6, 20X7, Zucor Corp. purchased merchandise from an unaffiliated foreign company for 50,000 units of the foreign company's local currency. On that date, the spot rate was $1.259. Zucor paid the bill in full three months later when the spot rate was $1.258. The spot rate was $1.255 on December 31, 20X7. What amount should Zucor report as a foreign currency transaction gain in its income statement for the year ended December 31, 20X7? A. $150 B. $200 C. $50 D. $0 Zeus Corporation has determined that it has 15 reportable operating segments. In order to comply with the standard for segment disclosures, Zeus Corporation should do which of the following? A. Report 10 reportable segments and disclose the remaining 5 segments as other operating segments. B. Report 12 reportable segments and show all other operating segments in a column labeled "Other Operating Segments." C. Report 10 reportable segments by combining the most closely related segments. D. Report 15 reportable segments as long as the 75 percent revenue test has been satisfied.

BNYJNO The Asker · Accounting

On November 6, 20X7, Zucor Corp. purchased merchandise from an unaffiliated foreign company for 50,000 units of the foreign company's local currency. On that date, the spot rate was $1.259. Zucor paid the bill in full three months later when the spot rate was $1.258. The spot rate was $1.255 on December 31, 20X7. What amount should Zucor report as a foreign currency transaction gain in its income statement for the year ended December 31, 20X7?

  • A. $150
  • B. $200
  • C. $50
  • D. $0

Zeus Corporation has determined that it has 15 reportable operating segments. In order to comply with the standard for segment disclosures, Zeus Corporation should do which of the following?

  • A. Report 10 reportable segments and disclose the remaining 5 segments as other operating segments.
  • B. Report 12 reportable segments and show all other operating segments in a column labeled "Other Operating Segments."
  • C. Report 10 reportable segments by combining the most closely related segments.
  • D. Report 15 reportable segments as long as the 75 percent revenue test has been satisfied.
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Community Answer
WLE4DC

Answer to Question 1 According to IAS-21, any gain on the date of reporting due to foreign exchange fluctuations should not be recorded. Only loss should be recorded as per the prudence. Therefore, th ... See the full answer