Turo, a US corporation, bought inventory items from a supplier in Argentina on November 5, 2009, for 100,000 Argentine pesos, when the spot rate was $.4295. At Turos December 31, 2009 year-end, the spot rate was $.4245. On January 15, 2010, Turo bought 100,000 pesos at the spot rate of $.4345 and paid the invoice. How much should Turo report as part of net income for 2009 and 2010 as foreign exchange transaction gain or loss? 2009 2010

$500 $(1,000)

$0 $(500)

$(500) $0

$(1,000) $ 500