On July 1, 2013, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2014. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: 11eb7050_6548_da71_9ae9_f56b7165d850_SM1695_00 In its 2014 income statement, what amount should Houghton include as a foreign exchange gain or loss on the note a. $35,000 gain. b. $35,000 loss. c. $10,000 gain. d. $10,000 loss.

Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

النسخة 5الرقم المعياري الدولي: 978-1260575910

Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

النسخة 5الرقم المعياري الدولي: 978-1260575910

تمرين 21

On July 1, 2013, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2014. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:

In its 2014 income statement, what amount should Houghton include as a foreign exchange gain or loss on the note
a. $35,000 gain.
b. $35,000 loss.
c. $10,000 gain.
d. $10,000 loss.

التوضيح

موثّق

Foreign exchange:
Foreign exchange aris...