On April 1, 20X6, EXP Inc. borrowed 550,000 from a European bank. Interest is payable at...

Transcribed Image Text:

On April 1, 20X6, EXP Inc. borrowed €550,000 from a European bank. Interest is payable at the rate of 6% on March 31 each year. EXP's fiscal year end is December 31. Relevant exchange rate information follows: April 1, 20X6 December 31, 20X6 Average for 20X6 (April to December) €1 = C$1.33 €1 = C$1.45 €1 = C$1.38 What is the amount of foreign exchange loss to be reported on the statement of comprehensive income (SCI) of EXP for the year ended December 31, 20X6, related to the loan and loan interest? a) $64,267.50 loss b) $66,000.00 loss c) $67,732.50 loss d) $68,310.00 loss On April 1, 20X6, EXP Inc. borrowed €550,000 from a European bank. Interest is payable at the rate of 6% on March 31 each year. EXP's fiscal year end is December 31. Relevant exchange rate information follows: April 1, 20X6 December 31, 20X6 Average for 20X6 (April to December) €1 = C$1.33 €1 = C$1.45 €1 = C$1.38 What is the amount of foreign exchange loss to be reported on the statement of comprehensive income (SCI) of EXP for the year ended December 31, 20X6, related to the loan and loan interest? a) $64,267.50 loss b) $66,000.00 loss c) $67,732.50 loss d) $68,310.00 loss

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Yes you can calculate the foreign excha... View the full answer