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On April 1, 2017, Shannon Company, a U -Angela,Inc  Euro Pound \begin{array} { cc } \quad\quad&\underline { \text { Euro} } & \underline { \text { Pound } } \\\end{array}

question 1

Short Answer

On April 1, 2017, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing note due April 1, 2018. The dollar value of the loan was as follows:
 Date  Amount  April 1,2017 $97,000 December 31, 2017 $103,000 April 1, 2018 $105,000\begin{array} { | l | c | } \hline { \text { Date } } & \text { Amount } \\\hline \text { April 1,2017 } & \$ 97,000 \\\hline \text { December 31, 2017 } & \$ 103,000 \\\hline \text { April 1, 2018 } & \$ 105,000 \\\hline\end{array}
-Angela,Inc. ,a U.S.company,had a euro receivable from exports to Spain and a British pound payable resulting from imports from England.Angela recorded foreign exchange gain related to both its euro receivable and pound payable.Did the foreign currencies increase or decrease in dollar value from the date of the transaction to the settlement date?  Euro Pound \begin{array} { cc } \quad\quad&\underline { \text { Euro} } & \underline { \text { Pound } } \\\end{array}
A)  Increase  Increase \begin{array} { cc } & \text { Increase } & \text { Increase } \\\end{array}
B)  Increase  Decrease \begin{array} { cc } & \text { Increase } & \text { Decrease } \\\end{array}
C)  Decrease  Decrease \begin{array} { cc } & \text { Decrease } & \text { Decrease } \\\end{array}
D)  Decrease  Increase \begin{array} { cc } & \text { Decrease } & \text { Increase } \\\end{array}
E)  No change  Decrease \begin{array} { cc } & \text { No change } & \text { Decrease } \\\end{array}

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