Exchange gains and losses resulting from translating (not remeasuring) foreign currency financial statements into U.S. dollars should be included as a(an): Select one: O a component of operating income. O b. ordinary gain/loss item in the income statement. O c. a component of other comprehensive income. O d. extraordinary item in the income statement for the period in which the rate changes. A U.S. company that has purchased inventory from a German vendor would be exposed to a net exchange gain on the unpaid balance if the: Select one: O a. amount to be paid was denominated in dollars. O b. U.S. company purchased a forward contract to buy Euros. O c. dollar strengthened relative to the Euro and the Euro was the denominated currency: O d. dollar weakened relative to the Euro and the Euro was the denominated currency The forward rate in a forward contract is: Select one: O a. the spot rate at the expiration date of the contract. O b. None of the above are true. O c. changes as the spot rate changes. O d. is said to be at a discount if it exceeds the spot rate at the inception of the contract. A U.S. firm has purchased, for 50,000 FC, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.80 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value of the equipment if the two-transaction method is used? Select one: O a. $50,000 O b. $42,000 O c. $40,000 O d. $38,000