Rabato Corporation acquired merchandise on account from a foreign supplier on November 1, 2009, for 60,000 LCU (local currency units). It paid the foreign currency account payable on January 15, 2010. The following exchange rates for 1 LCU are known: LO9 November 1, 2009 December 31, 2009 January 15, 2010

$0,345 0.333 0.359

a. How does the fluctuation in exchange rates affect Rabato’s 2009 income statement?

b. How does the fluctuation in exchange rates affect Rabato’s 2010 income statement?