During $2017,$ a U$.$S$.$ company purchased inventory from a foreign supplier. The transaction was denominated in the local currency of the seller. The direct exchange rate increased from the date of the transaction to the balance sheet date. The exchange rate decreased from the balance sheet date to the settlement date in $2018.$ For the years $2017$ and $2018,$ transaction gains or losses should be recognized as:

a$)2017,$ gain; $2018,$ gain

b$)2017,$ gain; $2018,$ loss

c$)2017,$ loss; $2018$ loss

d$)2017,$ loss; $2018,$ gain