Problem:
Grete Corp. had the following foreign currency transactions during 2009:
-Purchased merchandise from a foreign supplier on Jan 20,2009, for the U.S. dollar equivalent of $60,000 and paid the invoice on April 20, 2009, at the U.S. Dollar equivalent of $68,000
-On Sept 1, 2009, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lender's local currency on Sept 1, 2010. On Dec 31, 2009, the U.S. dollar equivalent of the pricipal amount was $320,000.
In Grete's 2009 income statement, what amount should be included as a foreign exchange loss?
a) $4,000
b) $20,000
c) $22,000
d) $28,000