On November 1,20X8,Denver Company Borrowed 500,000 Local Currency Units (LCU)from

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