Foreign currency transaction-interest-bearing note

Assignment Help Finance Basics

Reference no: EM13116404

On July 1, 2009, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2010. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:

Date Amount

July 1, 2009 (date borrowed) $195,000

Dec 31, 2009 (Houghton's year end) 220,000

July 1, 2010 (date repaid) 230,000

In its 2010 income statement, what amount should Houghton include as a foreign exchange gain or loss on the note?

a) $35,000 gain

b) $35,000 loss

c) $10,000 gain

d) $10,000 loss

Reference no: EM13116404

Questions Cloud

Ethics and complying with foreign laws : Is it ethical for a U.S. company to simply comply with the laws of the foreign country in which it is operating? Should U.S. laws be applicable to organizations operating in a foreign country?

Calculate the density of the solid : A 4.369g sample of metal is placed in a flask. water is added to the flask and the total volume in the flask is read to be 126.4ml.

Probability that five selected homes have security system : Assume there are 18 homes in the Quail Creek area and 9 of them have a security system. Five homes are selected at random: what is the probability all five of the selected homes have a security system?

What kinds of factors have lead to that species : What kinds of factors have lead to that species being listed as threatened or endangered? What actions have been undertaken in attempts to try to ensure survival of the species? What else could be done to minimize the damage and the danger to this..

Foreign currency transaction-interest-bearing note : On July 1, 2009, Houghton Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2010. The note is denominated in euros.

Transaction of foreign currency : Grete Corp. had the following foreign currency transactions during 2009: In Grete's 2009 income statement, what amount should be included as a foreign exchange loss?

What are the equilibrium concentrations of fructose : What are the equilibrium concentrations of fructose 1,6-biphosphate, dihydroxyacetone phosphate and glyceraldehyde 3-phosphate when 1mM fructose 1,6-biphosphate is incubated with aldolase under standard conditions?

Identify which segments are significant enough : Identify which segments are significant enough to warrant disclosure in accordance with FASB No. 131, "Reporting Disaggregated Information about a Business Enterprise," by applying the following quantitative tests:

What is the molar mass of the compound : A 33.0 g sample of a nonelectrolyte was dissolved is 700. g of water. The solution's freezing point was -2.84°C.

User Account

All Pages