Note: This Is a Kaplan CPA Review Question

question 45

Multiple Choice

Note: This is a Kaplan CPA Review Question
On September 22, 20X1, Yumi Corp. purchased merchandise from an unaffiliated foreign company for 10,000 units of the foreign company's local currency. On that date, the spot rate was $.55. Yumi paid the bill in full, six months later, on March 20, 20X2, when the spot rate was $.65. The spot rate was $.70 on December 31, 20X1. What amount should Yumi report as a foreign currency transaction loss in its income statement for the year ended December 31, 20X1?

• A) $500
• B) $0
• C) $1,500
• D) $1,000

---

Definitions:

Menopause-Related Symptoms

Symptoms associated with menopause, such as hot flashes, night sweats, mood changes, and vaginal dryness, resulting from a decrease in reproductive hormones.

Fertility

The natural capability to produce offspring or the ability of soil to produce abundant plant or crop growth.

Osteoporosis

A bone disease characterized by decreased bone density and quality, making bones fragile and more likely to fracture.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, heart failure, and hypertension.