Assume That on January 15, 2021 Singh Agrees to Purchase

question 41

Multiple Choice

Assume that on January 15, 2021 Singh agrees to purchase US$100,000 for C$117,000 for delivery on January 15, 2022. The exchange rate at Singh's December 31 year-end is US$1 = C$1.20 and the January 15, 2022 exchange rate is US$1 = C$1.19. What is the foreign exchange gain or loss recognized at January 15, 2022?

• A)$1,000 loss.
• B)$1,000 gain.
• C)$2,000 loss.
• D)$2,000 gain.

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Definitions:

Olfaction

The sense of smell, which is the detection and identification of chemicals by the sensory cells in the nose.

Thalamus

A major part of the brain serving as a hub for transmitting messages between the sensory organs and the cerebral cortex.

Kinesthetic Sense

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints, enabling physical coordination.

Intensity

The degree of strength, force, or level of energy in an activity, phenomenon, or a person's actions.