Post, Inc., had a receivable from a foreign customer that s payable in the customer's local currency. On 12/31/15, Post correctly included this receivable for 200,000 local currency units(LCU) in its balance sheet at $110,000. When Post collected the receivable on 2/1/16, the US dollar equivalent was $95,000. In Post's 2016 consolidated income statement, how much should it report as a foreign exchange loss?

Post, Inc., had a receivable from a foreign customer that s payable in the customer's local currency. On 12/31/15, Post correctly included this receivable for 200,000 local currency units(LCU) in its balance sheet at $110,000. When Post collected the receivable on 2/1/16, the US dollar equivalent was $95,000. In Post's 2016 consolidated income statement, how much should it report as a foreign exchange loss?

Post, Inc., had a receivable from a foreign customer that s payable in the customer's local currency. On 12/31/15, Post correctly included this receivable for 200,000 local currency units(LCU) in its balance sheet at $110,000. When Post collected the receivable on 2/1/16, the US dollar equivalent was $95,000. In Post's 2016 consolidated income statement, how much should it report as a foreign exchange loss?


A. 0
B. 10,000
C. 15,000
D. 25,000


Answer: C. 15,000