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On December 1, 2027, Corporation A, a U.S. firm, purchased inventory from W Company B, an Italian company, for 100,000 euros with payment due on
On December 1, 2027, Corporation A, a U.S. firm, purchased inventory from W Company B, an Italian company, for 100,000 euros with payment due on March 1, 2028. Corporation A's fiscal year-end is December 31, and the company did not engage in any hedging activities. The relevant spot rates for euros are as follows: Date Spot Rate December 1, 2027 $0.96 December 31, 2027 $0.99 March 1, 2028 $0.92 What is the amount of foreign currency transaction gain or loss that would be recognized in 2028
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