On April 1, 2010, Shannon Company, a U

question 27

Multiple Choice

On April 1, 2010, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing note due April 1, 2011. The dollar value of the loan was as follows: How much foreign exchange gain or loss should be included in Shannon's 2010 income statement?

• A) $3,000 gain.
• B) $3,000 loss.
• C) $6,000 gain.
• D) $6,000 loss.
• E) $7,000 gain.

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Definitions:

Cognitive Development

The process of growth and change in intellectual capabilities that influence a person’s behavior and learning abilities.

Psychosocial Development

The process of personality and emotional growth that occurs through interactions with others across the lifespan.

Transitive Inference

A form of logical reasoning that allows one to deduce a relation between two items based on their relations to a third item.

Seriation

The cognitive ability to arrange objects in order by size, location, or another attribute, a skill that develops in early childhood.