On December 5,2014,Unca Corporation,a U

question 2

Multiple Choice

On December 5,2014,Unca Corporation,a U.S.firm,bought inventory items from Skagerrak Corporation of Norway for 1,000,000 Norwegian kroner when the spot rate for kroner was $0.166.The purchase was denominated in kroner.At Unca's fiscal year end,December 31,2014,the spot rate was $0.171.On January 4,2015,Unca purchased 1,000,000 kroner for $167,500 and paid the invoice.How much gain or (loss) did Unca report in its 2014 and 2015 income statements,respectively?

• A)$(5,000)and $1,500
• B)$0 and ($1,500)
• C)($5,000)and $3,500
• D)$0 and ($3,500)

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Definitions:

Exposure Therapy

A psychological treatment that involves confronting fears and anxieties by gradual, controlled exposure to the objects, activities, or situations that cause them.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxiety disorders by gradually exposing them to the anxiety source while teaching them relaxation techniques.

Aversive Conditioning

is a form of behavioral training where a negative stimulus is paired with an undesirable behavior in order to reduce or eliminate that behavior.

Therapeutic Setting

An environment designed to facilitate healing and therapy, often characterized by safety, privacy, and comfort.