1. Entity A, a government entity, acquires a machine for $10,000 on November 1, 20x1,on account, and settles the account on January 3, 20x2. The machine is estimatedto have a useful life of 5 years and a residual value of 5% of cost. Entity A uses thestraight line method of depreciation. The exchange rates are as follows.November 1, 20x1$1 P50December 31 20x1$1 P40January 3 20x2$1P45How much is the net foreign exchange gain (loss) recognized in surplus or deficitfrom the transaction?|a. P10.000C. (P5 000)b. (P10,000)d. P5000

When an entity purchases on account in foreign currency, then they have to revalue that foreign…

Answered: How much is the net foreign exchange…

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Accounting

How much is the net foreign exchange gain (loss), recognized in surplus or deficit from the transaction?|

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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