Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

تمرين 21

On July 1, 2011, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2012.The note is denominated in euros.The U.S.dollar equivalent of the note principal is as follows:
In its 2012 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.