A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange...

A sale of goods by a U.S. company was denominated in a foreign currency. The sale resulted in a receivable that was fixed in terms of the amount of foreign currency that would be received. Exchange rates between the dollar and the currency in which the transaction was denominated changed so that a loss was incurred. This loss should be included as a(n)

(a) Extraordinary item in the income statement.

(b) Component of income from continuing operations.

(c) Separate component of stockholders’ equity.

(d) Deferred item in the balance sheet.