Lindy a calendar year U S corporation bought inventory items from a
Lindy, a calendar-year U.S. corporation, bought inventory items from a supplier in Germany on November 5, 2014, for 100,000 euros, when the spot exchange rate was $1.40 per euro. At Lindy’s December 31, 2014, year-end, the spot exchange rate was $1.38. On January 15, 2015, Lindy bought 100,000 euros at the spot exchange rate of $1.44 and paid the invoice.

Required:
How much foreign exchange gain or (loss) should Lindy report in its income statements for 2014 and 2015?

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