Parker Corp

question 64

Multiple Choice

Parker Corp., a U.S. company, had the following foreign currency transactions during 2021:(1.) Purchased merchandise from a foreign supplier on July 5, 2021 for the U.S. dollar equivalent of $80,000 and paid the invoice on August 3, 2021 at the U.S. dollar equivalent of $82,000.(2.) On October 1, 2021 borrowed the U.S. dollar equivalent of $872,000 evidenced by a non-interest-bearing note payable in euros on October 1, 2022. The U.S. dollar equivalent of the note amount was $860,000 on December 31, 2021, and $881,000 on October 1, 2022.What amount should be included as a foreign exchange gain or loss from the two transactions for 2022?

• A) $9,000 loss.
• B) $9,000 gain.
• C) $11,000 loss.
• D) $21,000 loss.
• E) $21,000 gain.

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Definitions:

Black Political

Refers to the political activities, ideologies, and movements that focus on issues important to Black communities, often emphasizing social justice, racial equality, and civil rights.

McDonaldization

A term describing the process by which the principles of the fast-food industry, such as efficiency, calculability, predictability, and control, have come to dominate other sectors of society.

Organizational Principle

Fundamental concepts or guidelines that dictate the structure, operation, and management of an organization, shaping its culture and functioning.

Efficiency

The ability to accomplish a task using the least amount of resources possible.