Lindy, 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 Lindy’s December 31, 2009 year-end, the spot rate was $.4245. On January 15, 2010, Lindy bought 100,000 pesos at the spot rate of $.4345 and paid the invoice. How much should Lindy report as part of net income for 2009 and 2010 as foreign exchange transaction gain or loss?

2009 2010

a. $ 500 $(1,000)

b. $0 $ (500)

c. $ (500) $0

d. $(1,000) $ 500