On July 1, 2015, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2016. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: 11eb7f44_9473_e96a_afa2_d791c097b422_SM1526_00 In its 2016 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.

Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

النسخة 12الرقم المعياري الدولي: 978-0077862220

Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

النسخة 12الرقم المعياري الدولي: 978-0077862220

تمرين 1

On July 1, 2015, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2016. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:

In its 2016 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

Calculating foreign exchange gain or los...