Use the following information to answer the question(s) below.

On October 4, 2014, Sooty Corporation borrowed 250,000 British pounds from a London bank, evidenced by an interest-bearing note payable due in one year. The note was payable in pounds. Exchange rates for pounds were:

-What exchange gain or loss appeared on Sooty's 2015 income statement?
A)a loss of $15,000
B)a loss of $5,000
C)a gain of $15,000
D)a gain of $5,000

Question

Use the following information to answer the question(s) below.

On October 4, 2014, Sooty Corporation borrowed 250,000 British pounds from a London bank, evidenced by an interest-bearing note payable due in one year. The note was payable in pounds. Exchange rates for pounds were:

-What exchange gain or loss appeared on Sooty's 2015 income statement?
A)a loss of $15,000 
B)a loss of $5,000 
C)a gain of $15,000 
D)a gain of $5,000

Quizplus · Accepted Answer

Sooty had a loss of $15,000 on the sale of its equipment.

Use the Following Information to Answer the Question(s) Below