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Question: On July 1, 2020, Mifflin Company borrowed


On July 1, 2020, Mifflin Company borrowed 200,000 euros from a foreign lender evidenced by an interest-bearing note due on July 1, 2021. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:



On July 1, 2020, Mifflin Company borrowed 200,000 -1

In its 2021 income statement, what amount should Mifflin include as a foreign exchange gain or loss on the note?
a. $15,000 gain
b. $15,000 loss
c. $10,000 gain
d. $10,000 loss

2.99

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