Winston Corp

question 42

Multiple Choice

Winston Corp., a U.S. company, had the following foreign currency transactions during 2021:(1.) Purchased merchandise from a foreign supplier on July 16, 2021 for the U.S. dollar equivalent of $47,000 and paid the invoice on August 3, 2021 at the U.S. dollar equivalent of $54,000.(2.) On October 15, 2021 borrowed the U.S. dollar equivalent of $315,000 evidenced by a non-interest-bearing note payable in euros on October 15, 2022. The U.S. dollar equivalent of the note amount was $295,000 on December 31, 2021, and $299,000 on October 15, 2022.What amount should be included as a foreign exchange gain or loss from the two transactions for 2021?

• A) $9,000 loss.
• B) $9,000 gain.
• C) $11,000 loss.
• D) $13,000 gain.
• E) $14,000 gain.

---

Definitions:

Legislative Bodies

Institutions or groups of individuals vested with the power to make, amend, and repeal laws.

Appeal Procedures

The formal processes through which decisions or actions can be contested or challenged, typically in judicial, organizational, or academic settings.

Freedom Of Speech

The right to express one's ideas and opinions freely through speech, writing, and other forms of communication without fear of censorship or retaliation.

Societal Right

A basic entitlement or freedom considered to be owed to all members of a society by virtue of their membership in that society.