13

Parker Corp., a U.S. company, had the following foreign currency transactions during 2021: (1) Purchased merchandise from a foreign supplier on July 5, 2021 for the US dollar equivalent of $80,000 and paid the invoice on August 3, 2021 at the U.S. dollar equivalent of $82,000. (2.) On October 1, 2021 borrowed the U.S. dollar equivalent of $872,000 evidenced by a non-interest-bearing note payable in euros on October 1, 2022. The U.S. dollar equivalent of the note amount was $860,000 on December 31, 2021, and $881,000 on October 1, 2022. What amount should be included as a foreign exchange gain or loss from the two transactions for 2022? Multiple Choice $21000 loss $9.000 gain $9.000 loss $21.000 gain Saves EAT Submit The U.S. dollar equivalent of the note amount was $860,000 on December 31, 2021, and $881,000 on October 1, 2022 What amount should be included as a foreign exchange gain or loss from the two transactions for 2022? Multiple Choice $21000 loss $9.000 gain $9,000 loss $21000 gain $11000 loss