1. Hollywood corporation had a realized foreign exchange loss of $25,000 for the year ended December 31,2020 and must also determine whether the following item will require year end adjustment.

• Hollywood had an $8,000 transaction loss resulting from the translation of the accounts of its wholly owned foreign subsidiary for the year ended December 31, 2020. The functional currency is the foreign local currency

• Hollywood had an account payable to an unrelated foreign supplier payable in the suppliers local currency. The U.S dollar equivalent of the payable was $60,000 on the October 31, 2020, invoice date, and it was $63,000 on December 31, 2020. The invoice is payable on January 30, 2021.

In Hollywoods 2020 consolidated income statement, what amount should be included as foreign currency transaction loss?