On January 1, 2012, Gupta Inc. issued 10,000,000 Euros (€)of bonds payable. The bonds are due on December 31, 2014. Over the life of the bonds, the exchange rates were as follows: $$\begin{array} { | l | l | }
\hline \text { January } 1,2012 & € 1 = \$ 1.40 \
\hline \text { December } 31,2012 & € 1 = \$ 1.45 \
\hline \text { December } 31,2013 & € 1 = \$ 1.50 \
\hline \text { December } 31,2014 & € 1 = \$ 1.48 \
\hline
\end{array}$$ What is the exchange gain (loss)recognized in income during 2013?

Question

On January 1, 2012, Gupta Inc. issued 10,000,000 Euros (€)of bonds payable. The bonds are due on December 31, 2014. Over the life of the bonds, the exchange rates were as follows: $$\begin{array} { | l | l | } 
\hline \text { January } 1,2012 & € 1 = \$ 1.40 \
\hline \text { December } 31,2012 & € 1 = \$ 1.45 \
\hline \text { December } 31,2013 & € 1 = \$ 1.50 \
\hline \text { December } 31,2014 & € 1 = \$ 1.48 \
\hline
\end{array}$$ What is the exchange gain (loss)recognized in income during 2013?

Quizplus · Accepted Answer

The Answer of On January 1, 2012, Gupta Inc. issued 10,000,000 Euros (€)of bonds payable. The bonds are due on December 31, 2014. Over the life of the bonds, the exchange rates were as follows: $$\begin{array} { | l | l | } 
\hline \text { January } 1,2012 & € 1 = \$ 1.40 \
\hline \text { December } 31,2012 & € 1 = \$ 1.45 \
\hline \text { December } 31,2013 & € 1 = \$ 1.50 \
\hline \text { December } 31,2014 & € 1 = \$ 1.48 \
\hline
\end{array}$$ What is the exchange gain (loss)recognized in income during 2013?

On January 1, 2012, Gupta Inc What Is the Exchange Gain (Loss)recognized in Income During 2013