Ball Corp, had the following foreign currency transactions during year 1:
-Merchandise was purchased from a foreign supplier on January 20, year 1, for the US dollar equivalent of $90,000. The invoice was paid on March 20, year 1, at the US dollar equivalent of $96,000.
-On July 1, year 1, Ball borrowed the US dollar equivalent of $500,00 evidenced by a note that was payable in the lender's local currency on July 1, year 3. On December 31, year 1, the US dollar equivalents of the principal amount and accrued interest were $520,000 and $26,000, respectively. Interest on the note is 10% per annum.
In Ball's year 1 income statement, what amount should be included as foreign exchange transaction loss as part of net income?
a. $0
b. $6,000
c. $21,000
d. $27,000
AUD - 1st - 60 (12/12), 61 (2/13), 61 (8/13), 78! (11/15)
REG - 55 (2/16) 69 (5/16) Retake(8/16)
BEC - 71(5/16) Retake (9/16)
FAR - (8/16)