A Company Has a Foreign-Currency Transaction Loss of $1400 and a Foreign-Currency

question 61

Multiple Choice

A company has a foreign-currency transaction loss of $1400 and a foreign-currency transaction gain of $9800. How is this information reported on the income statement?

• A)Other Losses: Foreign-Currency Transaction Loss $1400 and Other Gains: Foreign-Currency Transaction Gain $9800
• B)Other Gains: Foreign-Currency Transaction Gain, net $8400
• C)Other Comprehensive Income: Foreign-Currency Transaction Gain $9800 and Other Comprehensive Loss: Foreign-Currency Transaction Loss $1400
• D)Other Comprehensive Income: Foreign-Currency Transaction Gain, net $8400

---

Definitions:

Affordable Care Act

A United States federal statute aimed at improving and expanding access to health care coverage for Americans.

Tax Credits

Financial incentives that reduce the amount of tax owed to the government, dollar for dollar.

IRS Rule

A directive or regulation issued by the Internal Revenue Service that interprets and applies tax laws.

Statute Interpretation

The process by which courts analyze and determine the meaning of legislation passed by the legislature.