On October 1, year 1, Velec Co., a US company, contracted to purchase foreign goods requiring payment in Qatari riyals, one month after their receipt at Velec’s factory. Title to the goods passed on December 15, year 1. The goods were still in transit on December 31, year 1. Exchange rates were one dollar to twentytwo riyals, twenty riyals, and twenty-one riyals on October 1, December 15, and December 31, year 1, respectively. Velec should account for the exchange rate fluctuation in year 1 as