A company has a foreign-currency transaction loss of $1400 and a foreign-currency transaction gain of $9800. How is this information reported on the income statement?
A)Other Losses: Foreign-Currency Transaction Loss $1400 and Other Gains: Foreign-Currency Transaction Gain $9800
B)Other Gains: Foreign-Currency Transaction Gain, net $8400
C)Other Comprehensive Income: Foreign-Currency Transaction Gain $9800 and Other Comprehensive Loss: Foreign-Currency Transaction Loss $1400
D)Other Comprehensive Income: Foreign-Currency Transaction Gain, net $8400

Question

Quizplus · Accepted Answer

Foreign currency transaction gains and losses are reported as other comprehensive income.

A Company Has a Foreign-Currency Transaction Loss of $1400 and a Foreign-Currency