On Oct 1, 2013, Mud CO a US co purchased parts from Terra a portugues co with payment due on dec 1, 2013. If mud's 2013 operating income included no foreign exchange gain or loss, the transaction could have
a) resulted in an extraordinary gain
b) been denominated in US dollars
c) generated a foreign exchange to be reported as a deferred charge on the balance sheet
d) generated a foreign exchange loss to be reported as a separate component of stockholders' equity
Answer: b) been denominated in US dollars