Parker Corp

question 4

Multiple Choice

Parker Corp., a U.S. company, had the following foreign currency transactions during 2011:
(1.) Purchased merchandise from a foreign supplier on July 5, 2011 for the U.S. dollar equivalent of $80,000 and paid the invoice on August 3, 2011 at the U.S. dollar equivalent of $82,000.
(2.) On October 1, 2011 borrowed the U.S. dollar equivalent of $872,000 evidenced by a non-interest-bearing note payable in euros on October 1, 2011. The U.S. dollar equivalent of the note amount was $860,000 on December 31, 2011, and $881,000 on October 1, 2012.
-What amount should be included as a foreign exchange gain or loss from the two transactions for 2011?

• A) $2,000 loss.
• B) $2,000 gain.
• C) $10,000 gain.
• D) $14,000 loss.
• E) $14,000 gain.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as the highest need in Maslow's hierarchy of needs.

Humanistic

Pertaining to a psychological perspective that emphasizes individual growth, self-actualization, and the understanding of human behavior by considering the whole person.

Fully Functioning

A term often used in psychology to describe an individual who is living at their highest potential, often related to self-actualization.

Consistency

The quality of achieving a uniform, stable, and unvarying approach in actions or behavior over time.