Lindy, a calendar-year U.S. corporation, bought inventory items from a supplier in Germany on November 5, 2008 for 100,000 euros, when the spot rate was $0.4295. At Lindy’s December 31, 2008, year-end, the spot rate was $0.4245. On January 15, 2009 Lindy bought 100,000 euros at the spot rate of $0.4345 and paid the invoice.
Required:
How much foreign exchange gain or (loss) should Lindy report in its income statements for 2008 and 2009?