On September 1, 2014, Mudd Plating Company Entered into Two

question 17

Multiple Choice

On September 1, 2014, Mudd Plating Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days.The relevant exchange rates are as follows: The second forward contract was strictly for speculation.On September 30, 2014, what amount of foreign currency transaction gain should Mudd Plating report in income?

• A)$0.
• B)$2,500.
• C)$5,000.
• D)$10,000.

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Definitions:

Hearing

The sensory process by which sound waves are transformed into electrical signals that are interpreted by the brain as sound.

Taste Receptors

Specialized sensory cells located on the tongue that detect the five basic tastes: sweet, sour, salty, bitter, and umami.

Taste Buds

Sensory organs located on the tongue, allowing the perception of different tastes such as sweet, sour, bitter, and salty.

Supertaster

An individual who experiences taste sensations with far greater intensity than the average person, due to having a higher density of taste buds.