Question: During 2 0 2 4 , a U . S . company purchased inventory frcen a foreign supplier. The transactice was denominated in the local

During

2024,

a U

.

.

company purchased inventory frcen a foreign supplier. The transactice 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 balanoe sheet date to the settlement date in

2025 .

For the years

2024

and

2025,

transaction gains or losses should be recognired as:

) 2024,

gain;

2025,

gain

) 2024,

gainc;

2025,

loss

) 2024,

loss;

2025

loss

) 2024,

loss;

2025,

gain

During 2 0 2 4 , a U . S . company purchased

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