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Hunt Co. purchased merchandise for 300,000 British pounds from a vendor in London on November 30, Year 4. Payment in British pounds was due on
Hunt Co. purchased merchandise for 300,000 British pounds from a vendor in London on November 30, Year 4. Payment in British pounds was due on January 30, Year 5. The exchange rates to purchase one pound were as follows:
| November 30, | December 31, |
| Year 4 | Year 4 |
Spot-rate | $1.65 | $1.62 |
30-day rate | 1.64 | 1.59 |
60-day rate | 1.63 | 1.56 |
In its December 31, Year 4, income statement, what amount should Hunt report as foreign currency transaction gain?
$12,000
$9,000
$0
$6,000
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