Company X denominated a December 1, 20X9, purchase of goods in a currency other than its functional currency. The transaction resulted in a payable fixed in terms of the amount of foreign currency, and was paid on the settlement date, January 10, 2010. Exchange rates moved unfavorably at December 31, 20X9, resulting in a loss that should:
A. be included as a deferred charge at December 31, 20X9.
B. not be reported until January 10, 2010, the settlement date.
C. be included as a component of income from continuing operations for 20X9.
D. be included as a separate component of stockholders' equity at Dec. 31, 20X9.
Answer: C
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