Park Co.'s wholly-owned subsidiary, Schnell Corp., maintains its accounting records in Pounds Sterling. Because all of Schnell's branch offices are in Germany, its functional currency is the Euro. Remeasurement of Schnell's 20X8 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain in its other comprehensive income for the year ended December 31, 20X8?A. $-0-
B. $7,600
C. $8,100
D. $15,700

C) $8,100

Explanation:

A foreign exchange gain happens when one company engages in foreign trade or foreign direct investment and when they convert the foreign currency into domestic money, the final amount is larger than originally expected. This happens because the exchange rate is not fixed, and if the foreign currency appreciated, then a gain will result since more domestic money will be received. On the other hand, if the foreign currency depreciates, this will result in a loss.

answerconversion factor;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.