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On July 1, 2012, Southern Tagalog Company lent P308,000 to a US Supplier, evidenced by an interest-bearing note due on July 1, 2013. The note

On July 1, 2012, Southern Tagalog Company lent P308,000 to a US Supplier, evidenced by an interest-bearing note due

on July 1, 2013. The note is equivalent to $8,000 on the loan date. The note principal was appropriately included at

P328,000 in Southern Tagalog's December 31, 2012 balance sheet. The note was repaid to Southern Tagalog on July 1,

2013 due date when the exchange rate to P39 to $1. In its income statement for the year ended December 31, 2013 what

amount should Southern Tagalog include as a foreign currency transaction gain or loss?

a. P 16,000 loss

b. P 0

c. P 16,000 gain

d. P26,000 gain

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