The Following Information Pertains to Questions

question 37

Multiple Choice

The following information pertains to questions
XYZ Corp has a calendar year end.On January 1,2010,the company borrowed $5,000,000 U.S.dollars from an American Bank.The loan is to be repaid on December 31,2013 and requires interest at 5% to be paid every December 31.The loan and applicable interest are both to be repaid in U.S.dollars.XYZ does not hedge to minimize its foreign exchange risk.
The following exchange rates were in effect throughout the term of the loan: The average rates in effect for 2010 and 2011 were as follows:
-What is the amount of foreign exchange gain or loss recognized on the 2011 Income Statement?

• A)$800 gain
• B)$800 loss
• C)$2,500 gain
• D)$2,500 loss

---

Definitions:

Medical

Pertaining to the science or practice of medicine, which focuses on diagnosing, treating, and preventing diseases and disorders.

Essential Limitation

A fundamental or inherent restriction, often referring to the inherent bounds of a concept or a system's capabilities.

Thematic Section

A thematic section is a portion of a text or publication dedicated to a particular theme or topic, organizing content in a way that highlights its focus or significance.

Fellowship

A community of people sharing similar interests, purposes, or experiences, often in a professional or educational context.