An entity denominated a sale of goods in a currency other than its functional currency. The sale resulted in a receivable fixed in terms of the amount of foreign currency to be received. The exchange rate between the functional currency and the currency in which the transaction was denominated changed. The effect of the change should be included as a
a. Separate component of stockholders’ equity whether the change results in a gain or a loss.
b. Separate component of stockholders’ equity if the change results in a gain and as a component of income if the change results in a loss.
c. Component of income if the change results in a gain and as a separate component of stockholders’ equity if the change results in a loss.
d. Component of income whether the change results in a gain or a loss.
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