On April 1, 2010, Shannon Company, a U -How Much Foreign Exchange Gain or Loss Should Be Included

question 38

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: $$\begin{array} { | l | c | } \hline { \text { Date } } & \text { Amount } \\\hline \text { April 1,2010 } & \$ 97,000 \\\hline \text { December } 31,2010 & \$ 103,000 \\\hline \text { April 1, 2011 } & \$ 105,000 \\\hline\end{array}$$
-How much foreign exchange gain or loss should be included in Shannon's 2011 income statement?

• A) $1,000 gain.
• B) $1,000 loss.
• C) $2,000 gain.
• D) $2,000 loss.
• E) $8,000 loss.

---

Definitions:

Family Violence

Acts of violence and abuse among family members, including physical, emotional, and sexual abuse.

Drug Use

The act of consuming substances, which could be legal or illegal, for their physiological effects on the body.

Milgram Obedience

Milgram Obedience Experiment was a series of psychological experiments conducted by Stanley Milgram, which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Electric Shock

A sudden discharge of electricity through a part of the body, causing injury or muscular contraction.