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:

Utilitarian Artifacts

Objects made by humans for practical purposes rather than for decoration or artistic expression.

Regional Specialization

The development of specific economic activities and industries in particular areas or regions, often based on geographic benefits or resource availability.

Evolutionary Placement

The determination of the position or relationship of an organism or a group of organisms within an evolutionary tree, showing how species are related to each other.

Neandertals

An extinct species of humans who lived in Eurasia until approximately 40,000 years ago, known for their robust build and large brain capacity.