Winston Corp

question 34

Multiple Choice

Winston Corp., a U.S. company, had the following foreign currency transactions during 2011:
(1.) Purchased merchandise from a foreign supplier on July 16, 2011 for the U.S. dollar equivalent of $47,000 and paid the invoice on August 3, 2011 at the U.S. dollar equivalent of $54,000.
(2.) On October 15, 2011 borrowed the U.S. dollar equivalent of $315,000 evidenced by a non-interest-bearing note payable in euros on October 15, 2011. The U.S. dollar equivalent of the note amount was $295,000 on December 31, 2011, and $299,000 on October 15, 2012.
-What amount should be included as a foreign exchange gain or loss from the two transactions for 2011?

• A) $9,000 loss.
• B) $9,000 gain.
• C) $11,000 loss.
• D) $13,000 gain.
• E) $14,000 gain.

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Definitions:

Exploration

The process of seeking and discovering new information, experiences, or areas of knowledge.

Organic Structure

Organic structure in an organization is characterized by less formalization, more decentralization, and a flexible approach to tasks and roles, enhancing adaptability and communication among employees.

Innovative Unit

A team or department within an organization specifically tasked with developing new ideas or products.

Organic Structure

identifies a flexible, adaptive organizational design characterized by decentralized decision-making, broad job descriptions, and a network-based communication pattern.