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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f54014e-f0c4-4712-9fab-8bd47dbed54a%2F1bfcfae6-1826-4f98-ad8b-df7fe553b772%2F3kw9ywpa_processed.png&w=3840&q=75)
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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