Question: On September 1, 2010, Bain Corp. received an order for equipment from a foreign customer for 300,000 local currency units (LCU) when the US dollar

On September 1, 2010, Bain Corp. received an order for equipment from a foreign customer for 300,000 local currency units (LCU) when the US dollar equivalent was

$96,000. Bain shipped the equipment on October 15, 2010, and billed the customer for 300,000 LCU when the US dollar equivalent was $100,000. Bain received the customer’s remittance in full on November 16, 2010, and sold the 300,000 LCU for $105,000. In its income statement for the year ended December 31, 2010, Bain should report as part of net income a foreign exchange transaction gain of

a. $0

b. $4,000

c. $5,000

d. $9,000

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