A company located in the USA, which has the dollar as its functional currency, purchased inventory on February 1 in Vietnam for 10,000,000 dongs with a payment date of April 1. One dong can be exchanged for $0.01 on February 1, and one dong can be exchanged for $0.12 on April 1. On April 1, the company pays off the 10,000,000-dong debt from the purchase of inventory. When the US company presents its financial statements, which of the following statements is false?

1. The business should file with the statement a gross profit of $110,000.
2. No profit is recognized related to inventory
3. A loss of $20,000 is reported as a result of accounts payable

4. Cost of goods sold is reported at $120,000