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What amount would the company recognize as a gain

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Question - On November 25, Year 1, Smith Inc., a U.S. company, sold merchandise on account to a European company for 5,000 euros. At that time, $1 could purchase 0.75 euros. On December 31, Year 1, one euro could purchase $1.35. On January 25, Year 2, when the payment was made, $1 could purchase 0.85 euros. What amount would the company recognize as a gain (loss) from foreign currency transactions when the receivable was collected?

Reference no: EM133186652

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