FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:On April 1, 2020, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing note due April 1, 2021.
The dollar value of the loan was as follows:
Date
April 1, 2020
December 31,
Amount
$ 97,000
103,000
105,000
How much foreign exchange gain or loss should be included in Shannon's 2021 income statement?
2020
April 1, 2021
How much foreign exchange gain or loss should be included in Shannon's 2021 income statement?
Multiple Choice
$2,000 loss.
$1,000 loss.
O $1,000 gain,
$8.000 loss.
$2,000 gain.
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