On November 6,20X7,Zucor Corp

question 32

Multiple Choice

On November 6,20X7,Zucor Corp.purchased merchandise from an unaffiliated foreign company for 50,000 units of the foreign company's local currency.On that date,the spot rate was $1.259.Zucor paid the bill in full three months later when the spot rate was $1.258.The spot rate was $1.255 on December 31,20X7.What amount should Zucor report as a foreign currency transaction gain in its income statement for the year ended December 31,20X7?

• A)$0
• B)$50
• C)$150
• D)$200

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Definitions:

Semantic Memory

A subset of long-term memory involving the capacity to remember meanings, understandings, and concept-based knowledge unrelated to specific experiences.

Short-Term Memory

The part of the memory system where information is stored for a short duration, typically for a few seconds to a minute.

Sperling's Partial Report Technique

A cognitive psychology experiment that demonstrated the existence and characteristics of the visual sensory memory by asking participants to recall a subset of characters from a briefly displayed array.

Digit-Span

A common memory test that measures the capacity of one's short-term memory to recall a sequence of numbers.