A company has a foreign-currency transaction gain of $500 and a foreign-currency transaction loss of $9500. How is this information reported on the income statement?
A)Other Losses: Foreign-Currency Transaction Loss $9500 and Other Gains: Foreign-Currency Transaction Gain $500
B)Other Losses: Foreign-Currency Transaction Loss, net $9000
C)Other Comprehensive Loss: Foreign-Currency Transaction Loss $9500 and Other Comprehensive Income: Foreign-Currency Transaction Gain $500
D)Other Comprehensive Loss: Foreign-Currency Transaction Loss, net $9000

Question

Quizplus · Accepted Answer

Foreign-currency transaction gains and losses are typically netted and reported as a single net amount on the income statement. In this case, the net loss is $9000 ($9500 loss - $500 gain).

A Company Has a Foreign-Currency Transaction Gain of $500 and a Foreign-Currency