On January 1, Multicorp, a U

question 33

Multiple Choice

On January 1, Multicorp, a U.S. firm, sells £200,000 of merchandise on account to an importer in Britain with payment due on February 15. The relevant exchange rates are as follows:
January 1 $1.6260
January 31 $1.5995
February 15 $1.5900
February 28 $1.5855
What would be the gain or loss for U.S. tax purposes on February 15?

• A) No gain or loss would be recognized.
• B) $5,300 loss
• C) $7,200 loss
• D) $1,900 loss

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Definitions:

Duration

The measure of how long something lasts, from its beginning to its end, often used in the study of perception and memory.

Physical Reactions

Bodily responses to stimuli, including reflexes, movements, and physiological changes, often automatic and involuntary.

Blocked

Prevented from progressing or moving forward, often referring to an impediment in a process or pathway.

Thwarted

Refers to being prevented from accomplishing something or obstructed in achieving an objective.