Question: on september 1 year 1, Cano & Co a u s corporation , sold merchandise to a foreign firm for 250000 francs. terms of the

on september 1 year 1, Cano & Co a u s corporation , sold merchandise to a foreign firm for 250000 francs. terms of the sale require payment in france on February 1, Year 2. On September 1, year 1, the sport exchange rate was .20 per franc. At december 31. year 1, Cano's year end, the spot rate was .19, but the rate increased to .22 by february 1, year 2, when payment was received. how much should Cano report as foreign exchange gain or loss in its year 2 income statement?

A $0

B $2500 LOSS

C $5000 GAIN

D $7500 GAIN

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