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The Balance in Newsprint Corp

question 44

Multiple Choice

The balance in Newsprint Corp.'s foreign exchange loss account was $10,000 on December 31,20X8,before any necessary year-end adjustment relating to the following:
(1) Newsprint had a $15,000 debit resulting from the restatement in dollars of the accounts of its wholly owned foreign subsidiary for the year ended December 31,20X8.
(2) Newsprint had an account payable to an unrelated foreign supplier,payable in the supplier's foreign currency unit on January 15,20X9.The U.S.dollar-equivalent of the payable was $50,000 on the December 1,20X8,invoice date and $53,000 on December 31,20X8.
-Based on the information provided,in Newsprint's 20X8 consolidated income statement,what amount should be included as foreign exchange loss in computing net income,if the supplier's foreign currency is the functional currency and the translation method is appropriate?

Gain knowledge on how undue influence and duress affect the legitimacy of consensual agreements.

Grasp the role and importance of consideration in the validation of contracts and contract modifications.

Recognize the significance of distinguishing between factual and value mistakes in contract law across different jurisdictions.

Understand the procedural and substantive requirements for contract rescission based on various grounds such as fraud, duress, and mistake.

Definitions:

Accounting Income

The income of a company as calculated under accounting rules, which may differ from taxable income due to differences in accounting and tax regulations.

Average Rate of Return

A measure of the profitability of an investment, calculated as the average annual profit of the investment divided by the initial cost.

Automatic Insertion Machine

A machine used in manufacturing for automatically placing components onto printed circuit boards.

Average Investment

An approach for calculating the mean amount invested over a particular period, considering both the initial and final investment levels.