Question - Grete Corp. has the following foreign currency transactions during 2011:

Purchased merchandise from a foreign supplier on January 20, 2011 for the U.S. Dollar equivalent of $60,000 and paid the invoice on April 20, 2011 at the U.S. Dollar equivalent of $68,000.

On September 1, 2011, borrowed the U.S. dollar equivalent of $300,000 evidenced by a note that is payable in the lender's local currency on September 1, 2012. On December 31, 2011, the U.S. dollar equivalent of the principal amount was $320,000.

In Grete's 2011 income statement, what amount should be included as a foreign exchange loss?

a) $4000

b) $20,000

c) $22,000

d) $28,000