Refer to PE 6-66. Compute the foreign exchange gain or loss that should be reported in (1)

Question:

Refer to PE 6-66. Compute the foreign exchange gain or loss that should be reported in (1) Year 1 and (2) Year 2.

Data from PE 6-66

On November 6 of Year 1, Havens Company provided services (on account) to a client located in Thailand. Th e contract price is 100,000 Thai baht. On November 6, the exchange rate was 50 baht for one U.S. dollar. On December 31, the exchange rate was 40 baht for one U.S. dollar. Havens received payment on the account on March 23 of Year 2. On that date, the exchange rate was 100 baht for one U.S. dollar. Make the journal entry necessary on November 6 to record the performance of the service.

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...