Question: Assuming no forward contract was entered into, how much foreign exchange gain or loss should Reiter report on its Year 1 income statement with regard

Assuming no forward contract was entered into, how much foreign exchange gain or loss should Reiter report on its Year 1 income statement with regard to this transaction?

a. A $5,000 gain.

b. A $3,000 gain.

c. A $2,000 loss.

d. A $1,000 loss.

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