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What is the impact on net income of the change

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Question - A U.S. company (with the U.S. dollar as its functional currency) buys inventory and immediately sells it to a customer in France on November 28, Year One, for 10,000 euros. The inventory had cost 6,000 euros several days before, an amount which had been paid on the day of purchase. This merchandise is sold on account with the money to be paid by the customer on January 19, Year Two. On November 28, Year One, 1 euro was worth $2.00 whereas on December 31, Year One, 1 euro is worth $1.90. What is the impact on net income of the change in the exchange rate?

a. $600 gain

b. $600 loss

c. $1,000 gain

d. $1,000 loss

Reference no: EM131761497

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