On September 1, 2017, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for

Question:

On September 1, 2017, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for 250,000 euros. Terms of the sale require payment in euros on February 1, 2018. On September 1, 2017, the spot was $1.30 per euro. At Cano's year-end on December 31, 2017, the spot rate was $1.28, but the rate increased to $1.33 by February 1, 2018, when payment was received.
Required:
1. What foreign currency transaction gain or loss should be recorded in 2017?
2. What foreign currency transaction gain or loss should be recorded in 2018?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...