During 2019 a U.S. firm sold inventory to a foreign customer. The transaction was denominated in the local currency of the buyer. The direct exchange rate decreased from the date of the transaction to...

During 2019 a U.S. firm sold inventory to a foreign customer. The transaction was denominated in the local currency of the buyer. The direct exchange rate decreased from the date of the transaction to the end of the fiscal period; the rate increased from the end of the fiscal year to the date the account was settled in 2020. A transaction gain or loss should be recognized