The balance in Bart Corp.’s foreign exchange loss account was $13,000 at December 31, year 1, before any necessary year-end adjustment relating to the following:• | Bart had a $20,000 loss resulting from the translation of the accounts of its wholly owned foreign subsidiary for the year ended December 31, year 1. | • | Bart had an account payable due to an unrelated foreign supplier payable in the local currency of the foreign supplier on January 27, year 2. The US dollar equivalent of the payable was $100,000 on the November 28, year 1 invoice date, and it was $106,000 on December 31, year 1. |
In Bart’s year 1 consolidated income statement, what amount should be included as foreign exchange loss?
| A. $33,000 | | B. $27,000 | | C. $19,000 | | D. $13,000 |
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