Use the Following Information to Answer the Question(s)below

question 22

Multiple Choice

Use the following information to answer the question(s) below.
On October 4,2010,Sooty Corporation borrowed 250,000 British pounds from a London bank,evidenced by an interest-bearing note payable due in one year.The note was payable in pounds.Exchange rates for pounds were:

-What exchange gain or loss appeared on Sooty's 2010 income statement?

• A)a loss of $10,000
• B)a loss of $15,000
• C)a gain of $10,000
• D)a gain of $15,000

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Definitions:

Year

A period of time consisting of 365 days, or 366 in a leap year, used for measuring the passage of time.

Human Genome

The complete set of nucleic acid sequences for humans, encoded as DNA within the 23 chromosome pairs in cell nuclei and in a small DNA molecule found within individual mitochondria.

Mapping

The process of creating visual representations of physical areas of land, including natural and man-made features.

Year

A period of 365 days (or 366 days in leap years) used for calculating time according to the Gregorian calendar.