On October 1, Year 1, Mild Co., a U.S. company, purchased machinery from Grund, a German company, with payment due on April 1, Year 2. If Mild's Year 1 operating income included no foreign exchange transaction gain or loss, then the transaction could have:
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a. | Caused a foreign currency gain to be reported as a contra account against machinery. | |
b. | Caused a foreign currency translation gain to be reported as a component of other comprehensive income in stockholders' equity. | |
c. | Resulted in an extraordinary gain. | |
d. | Been denominated in U.S. dollars. |
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