Mint Corporation Has Several Transactions with Foreign Entities

question 18

Multiple Choice

Mint Corporation has several transactions with foreign entities.Each transaction is denominated in the local currency unit of the country in which the foreign entity is located.On November 2,2008,Mint sold confectionary items to a foreign company at a price of LCU 23,000 when the direct exchange rate was 1 LCU = $1.08.The account has not been settled as of December 31,2008,when the exchange rate has increased to 1 LCU = $1.10.The foreign exchange gain or loss on Mint's records at year-end for this transaction will be:

• A)$460 loss
• B)$387 loss
• C)$387 gain
• D)$460 gain

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Definitions:

Emotional Abuse

A type of maltreatment where an individual inflicts actions upon another that can lead to mental health issues such as anxiety, long-term depression, or PTSD.

Intimate Partner

A person with whom someone has a close personal relationship that often involves physical or emotional intimacy.

Crime

An action or omission that constitutes an offense that may be prosecuted by the state and is punishable by law.

Embarrassed

The feeling of discomfort or self-consciousness caused by a perceived awkward or humiliating situation.