What is the total amount of the transaction gain or loss to be included in net income?

a. \($2,000\) gain

b. \($2,000\) loss

c. No gain or loss is recognized until the raw materials are sold

d. There is no gain or loss. The change in the value of the raw materials offsets the change in the payable.

On December 1, 2009, SMC entered into a transaction to import raw materials from a foreign country. The account is to be settled on March 1 with the payment of 50,000 euros. The spot rate for euros on December 1 was \($1.4/euro\) and on March 1 was \($1.44/euro.\)