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Terms of Leases 84088, TB 6 2, Geographic Reporting of Certain Domestic Currency Transactions, 091489  Form

Terms of Leases 84088, TB 6 2, Geographic Reporting of Certain Domestic Currency Transactions, 091489 Form

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All right, scholars, when we start looking at financial statement transactions, it’s just a single transaction with another company that’s located in another country, and we’ve agreed to allow them to pay us in their currency. So we’ve shipped goods to them and then ultimately they will pay us in their currency. And we take it and then we convert it to our currency, which for our example will be the U.S. dollar. So let’s go through some of the facts associated with this one. Little Cabbage is an American-based restaurant that prides itself on serving authentic French cuisine. For the company’s signature dish, chicken with trifle cream sauce. Little Cabbage orders trifles from La Grand Truffles, a French-based truffle company supplier. Little Cabbage has no ownership interest in La Grand Truffles and agrees to pay for truffles in the Euro. On December 6 of Year 1, Little Cabbage purchases 250 units of truffles at the Euro, 250 Euros. On that day, the spot rate is $1.11 for a

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