On December 1, 2010, Sedona Trading Co. sold goods to a German company for 25,000 German marks (25,000 DM) to be collected on January 12, 2011. The exchange rates on December 1 and December 31, 2010 are US$0.75 = 1 DM and US$.90 = 1 DM, respectively. What is Sedona's exchange gain or loss for 2010?
a.$22,500 Exchange Gain
b. $3,750 Exchange Loss
c. $3,750 Exchange Gain
d. $18,750 Exchange Loss
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