Winston Corp., a U.S. company, had the following foreign currency transactions during 2018 (1.) Purchased...
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Winston Corp., a U.S. company, had the following foreign currency transactions during 2018 (1.) Purchased merchandise from a foreign supplier on July 16, 2018 for the U.S. dollar equivalent of $47,000 and paid the invoice on August 3, 2018 at the U.S. dollar equivalent of S54,000 (2.) On October 15, 2018 borrowed the U.S. dollar equivalent of S315,000 evidenced by a non-interest-bearing note payable in euros on October 15, 2019. The U.S. dollar equivalent of the note amount was $295,000 on December 31, 2018, and $299.000 on October 15, 2019 What amount should be included as a foreign exchange gain or loss from the two transactions for 2018? A) S9,000 gain. B) S9,000 loss C) S14,000 gain. D) S13,000 gain. E) S11,000 loss 2
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