On December 5,2014,Unca Corporation,a U

Multiple Choice

On December 5,2014,Unca Corporation,a U.S.firm,bought inventory items from Skagerrak Corporation of Norway for 1,000,000 Norwegian kroner when the spot rate for kroner was $0.166.The purchase was denominated in kroner.At Unca's fiscal year end,December 31,2014,the spot rate was $0.171.On January 4,2015,Unca purchased 1,000,000 kroner for $167,500 and paid the invoice.How much gain or (loss) did Unca report in its 2014 and 2015 income statements,respectively?

A) $(5,000) and $1,500
B) $0 and ($1,500)
C) ($5,000) and $3,500
D) $0 and ($3,500)