Round Answers to the nearest ONE

Bayan plc is a Kuwait company which has the KD as its functional currency. The company has the following transactions in Saudi Riyal during the year to 31 December 2010 the financial year is from 1 January-31 December

1 October 2010- Inventory costing 100,000 Saudi Riyal purchased on credit from Y

1 November 2010- Equipment costing 400,000 Saudi Riyal purchased on credit from X and signed a note payable

30 November 2010-Paid Y 60,000 Saudi Riyal on account for the inventory purchased on 1 October

15 December 2010- Paid X 300,000 Saudi Riyal for the equipment purchased on 1 November.

Exchange rates may be assumed as follows:

1 October 2010- 1 KD= 10 Saudi Riyal

1 November 2010- 1 KD = 11 Saudi Riyal

30 November 2010- 1 KD= 12 Saudi Riyal

15 December 2010- 1 KD= 13 Saudi Riyal

31 December 2010- 1 KD = 14 Saudi Riyal

The Total exchange gain/loss that is reported in the income statement of Bayan Plc Company for year ended 31 December 2010 is?

Select one:

a. None of the answers is correct

b. Exchange loss KD 8,361

c. Exchange Gain KD 8,287

d. Exchange loss KD 26,033

e. Exchange Gain KD 8,361