Grete Corp. had the following foreign currency transactions during 2011:

• Purchased merchandise from a foreign supplier on January 20, 2011, for the U.S. dollar equivalent of $60,000 and paid the invoice on April 20, 2011, at the U.S. dollar equivalent of $68,000.

• On September 1, 2011, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lender’s local currency on September 1, 2012. On December 31, 2011, the U.S.

dollar equivalent of the principal amount was $320,000.

In Grete’s 2011 income statement, what amount should be included as a foreign exchange loss?

a. $4,000.

b. $20,000.

c. $22,000.

d. $28,000.