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In its 2024 Income statement, what amount should Mifflin Include as a foreign exchange gain or loss on the note?

In its 2024 Income statement, what amount should Mifflin Include as a foreign exchange gain or loss on the note?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2023, Mifflin Company borrowed 280,000 euros from a foreign lender, evidenced by an interest-bearing note due on July 1, 2024. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: Date Amount July 1, 2023 (date borrowed) December 31, 2023 (Mifflin's year-end) $ 265,000 258,800 245,000 July 1, 2024 (date repaid) In Its 2024 Income statement, what amount should Mifflin include as a foreign exchange gain or loss on the note? Multiple Choice $13,800 gain $13,800 loss $20,000 gain $20,000 loss
Transcribed Image Text:On July 1, 2023, Mifflin Company borrowed 280,000 euros from a foreign lender, evidenced by an interest-bearing note due on July 1, 2024. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows: Date Amount July 1, 2023 (date borrowed) December 31, 2023 (Mifflin's year-end) $ 265,000 258,800 245,000 July 1, 2024 (date repaid) In Its 2024 Income statement, what amount should Mifflin include as a foreign exchange gain or loss on the note? Multiple Choice $13,800 gain $13,800 loss $20,000 gain $20,000 loss
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