Parker Corp

question 64

Multiple Choice

Parker Corp., a U.S. company, had the following foreign currency transactions during 2021:(1.) Purchased merchandise from a foreign supplier on July 5, 2021 for the U.S. dollar equivalent of $80,000 and paid the invoice on August 3, 2021 at the U.S. dollar equivalent of $82,000.(2.) On October 1, 2021 borrowed the U.S. dollar equivalent of $872,000 evidenced by a non-interest-bearing note payable in euros on October 1, 2022. The U.S. dollar equivalent of the note amount was $860,000 on December 31, 2021, and $881,000 on October 1, 2022.What amount should be included as a foreign exchange gain or loss from the two transactions for 2022?

• A) $9,000 loss.
• B) $9,000 gain.
• C) $11,000 loss.
• D) $21,000 loss.
• E) $21,000 gain.

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Definitions:

Figure-Ground

Figure-Ground is a type of perceptual grouping in visual psychology where the viewer can alternate between a 'figure' aspect and a 'ground' aspect in an image, each comprising distinct elements of the visual experience.

Kinesthetic

Relating to kinesthesia, the sense that detects bodily position, weight, or movement of the muscles, tendons, and joints.

Vestibular

Pertaining to the body's vestibular system, responsible for maintaining balance and spatial orientation.

Specific Receptor

A specialized cell or molecule designed to recognize and bind with particular substances, triggering a specific response in the body.