Alpha, Inc

question 73

Multiple Choice

Alpha, Inc., a U.S. company, had a receivable from a customer that was denominated in Mexican pesos. On December 31, 2010, this receivable for 75,000 pesos was correctly included in Alpha's balance sheet at $8,000. The receivable was collected on March 2, 2011, when the U.S. equivalent was $6,900. How much foreign exchange gain or loss will Alpha record on the income statement for the year ended December 31, 2011?

• A) $1,100 loss.
• B) $1,100 gain.
• C) $6,900 loss.
• D) $6,900 gain.
• E) $8,000 gain.

---

Definitions:

Hispanic Americans

Individuals in the United States who trace their roots to Spanish-speaking countries in Latin America and Spain, contributing to the cultural diversity of the U.S.

Mortality Rate

The quantification of death rates within a given population, adjusted for its size, over a specific time period.

African Americans

A racial or ethnic group in the United States with ancestry tracing back to Africa, particularly Sub-Saharan Africa.

White Americans

Refers to residents of the United States who identify as white, encompassing a diverse range of backgrounds, including European descent.