On April 1, 2010, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by
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On April 1, 2010, Shannon Company, a U.S. company, borrowed 100,000 euros from a foreign bank by signing an interest-bearing note due April 1, 2011. The dollar value of the loan was as follows:
| Date | Amount |
| April 1, 2010 | $ 97,000 |
| December 31, 2010 | $ 103,000 |
| April 1, 2011 | $ 105,000 |
How much foreign exchange gain or loss should be included in Shannon's 2011 income statement?
$1,000 gain.
$1,000 loss.
$2,000 gain.
$2,000 loss.
$8,000 loss.
Expert Answer:
Related Book For 
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date:
