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  3. on october 1, velec co., a u.s. company, contracte

On October 1, Velec Co., a U.S. company, contracted to purchase foreign goods requiring payment...

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Accounting

On October 1, Velec Co., a U.S. company, contracted to purchase foreign goods requiring payment in euros one month after their receipt at Velec's factory. Title to the goods passed on December 15. The goods were still in transit on December 31. Exchange rates were one dollar to 22 euros, 20 euros, and 21 euros on October 1, December 15, and December 31, respectively. Velec should account for the exchange rate fluctuation as: O A. A gain included in net income before discontinued operations. O B. A loss included in net income before discontinued operations. O C. A gain reported net of tax after discontinued operations. O D. A loss reported net of tax after discontinued operations

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