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Question 15

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Use the following information to answer the question(s) below.
On October 4,2010,Sooty Corporation borrowed 250,000 British pounds from a London bank,evidenced by an interest-bearing note payable due in one year.The note was payable in pounds.Exchange rates for pounds were:
Use the following information to answer the question(s) below. On October 4,2010,Sooty Corporation borrowed 250,000 British pounds from a London bank,evidenced by an interest-bearing note payable due in one year.The note was payable in pounds.Exchange rates for pounds were: -What exchange gain or loss appeared on Sooty's 2011 income statement? A) a loss of $15,000 B) a loss of $5,000 C) a gain of $15,000 D) a gain of $5,000
-What exchange gain or loss appeared on Sooty's 2011 income statement?


A) a loss of $15,000
B) a loss of $5,000
C) a gain of $15,000
D) a gain of $5,000

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