4. Vermont Corporation, a U.S. enterprise, purchased merchandise from a New Zealand supplier on November 5, 2005,

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4. Vermont Corporation, a U.S. enterprise, purchased merchandise from a New Zealand supplier on November 5, 2005, for $NZ50,000, when the selling spot rate was

. On Vermont’s December 31, 2005, year-end the selling spot rate was $0.4245. On January 15, 2006, Vermont acquired $NZ50,000 at the selling spot of

$0.4345 and paid the invoice. What amounts does Vermont report in its income statements for years 2005 and 2006 as foreign currency transaction gains or (losses)?

a. $250 $(500)

b. (250) -0-

c. -0- (250)

d. -0- -0-

e. Some other amounts

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