On November 1,2008,Denver Company Borrowed 500,000 Local Currency Units (LCU)from

question 53

Multiple Choice

On November 1,2008,Denver Company borrowed 500,000 local currency units (LCU) from a foreign lender evidenced by an interest-bearing note due on November 1,2009,which is denominated in the currency of the lender.The U.S.dollar equivalent of the note principal was as follows: In its income statement for 2009,what amount should Denver include as a foreign exchange gain or loss on the note principal?

• A)15,000 gain
• B)25,000 gain
• C)15,000 loss
• D)40,000 loss

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Definitions:

Survival And Reproduction

Fundamental biological processes where an organism maintains its existence and produces offspring.

Happy Child

A child experiencing a state of well-being, contentment, and joy, often resulting from secure attachment, emotional warmth, and fulfillment of needs.

Bodily Health

The overall physical well-being of a person, including fitness level, the absence of disease, and the condition of bodily functions.

Watson

Refers to John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the study of observable behavior.