Modern Advanced Accounting in Canada 8th edition Connect multiple choice: SJ Corporation, a Canadian corporation, has a
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- Modern Advanced Accounting in Canada 8th edition Connect multiple choice:
- SJ Corporation, a Canadian corporation, has a December 31 year-end. On January 1, 2016, it borrowed US$2,000,000 from an American bank. The loan is scheduled to be repaid on December 31, 2020. Interest of 10% is paid annually on December 31. The following exchange rates existed on the dates significant for accounting purposes:
January 1, 2016 | US$1.00 = C$1.21 |
Average 2016 | US$1.00 = C$1.18 |
December 31, 2016 | US$1.00 = C$1.16 |
Average 2017 | US$1.00 = C$1.10 |
December 31, 2017 | US$1.00 = C$1.02 |
Which of the following is the total exchange gain or loss that will appear in the 2017 income statement with respect to the loan?
$264,000 gain
$16,000 gain
$280,000 gain
$296,000 gain
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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