On October 1, Tile Co., a U.S. company, purchased products from Azulejo, a Portuguese company, with payment due on December 1. If Tile’s operating income included no foreign exchange gain or loss, the transaction could have
a. Been denominated in U.S. dollars.
b. Resulted in an unusual gain.
c. Generated a foreign exchange gain to be reported in accumulated other comprehensive income on the balance sheet.
d. Generated a foreign exchange loss to be reported as a separate component of stockholders’ equity.