Recognizing foreign currency exchange losses On November 2, 2018, a U.S.-based company with the $US as its functional currency entered into a 90-day futures contract to purchase 80,000 Swiss francs when the contract quote was $1.09. The purchase was for speculation in price movement. The following exchange rates existed during the contract period:

	30 Day Futures	Spot Rate
November 2, 2018	$1.03	$1.04
December 31, 2018	$1.05	$1.07
January 31, 2019	$1.06	$1.08

What amount should the U.S.-based company report as foreign currency exchange loss in its income statement for the year ended December 31, 2018?

$4,800

$4,000

$3,200

$1,600