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:

Iron Deficiency

A condition resulting from inadequate levels of iron in the body, leading to anemia and associated symptoms like fatigue.

Kidney Failure

A condition where the kidneys lose their ability to filter waste and excess fluids from the blood, potentially requiring dialysis or transplantation.

Skin Glands

Specialized organs in the skin responsible for producing substances like sweat and sebum to regulate body temperature and protect against bacteria.

Linear Scleroderma

A rare form of scleroderma that causes bands or streaks of hardened skin, typically on one side of the body.