Montana Corporation a U.S. company, contracted to purchase foreign goods. Payment in foreign currency was due one month after delivery. Between the delivery date and the time of payment, the exchange rate changed in Montana's favor. The resulting gain should be reported in the financial statements as a(n):

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The resulting gain from the change in exchange rate should be reported as a component of income from continuing operations. This is because it is directly related to the core business operations of Montana Corporation, which involves purchasing foreign goods. Changes in exchange rates affecting transactions are considered part of normal business operations and are included in net income.