On January 1,20x4,HB Inc

question 35

Multiple Choice

On January 1,20x4,HB Inc.issued 10,000,000 Euros (€) of bonds payable.The bonds are due on December 31,20X6.Over the life of the bonds,the exchange rates were as follows:

Assume that exchange gains and losses on long-term monetary are recognized in income immediately.What is the exchange gain (loss) recognized in income during 20X6?

• A)$(800,000)
• B)$(200,000)
• C)$ 200,000
• D)$ 800,000

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