Multiple Choice
On November 1,20X8,Denver Company borrowed 500,000 local currency units (LCU) from a foreign lender evidenced by an interest-bearing note due on November 1,20X9,which is denominated in the currency of the lender.The U.S.dollar equivalent of the note principal was as follows: 
In its income statement for 20X9,what amount should Denver include as a foreign exchange gain or loss on the note principal?
A) 15,000 gain
B) 25,000 gain
C) 15,000 loss
D) 40,000 loss
Correct Answer:
Verified
Correct Answer:
Verified
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