On November 30, 2019, a U $\quad$ $\quad$ $\begin{array}{llcc}& \underline{ 2019 } & &&&&&& \underline {2020 } \\\end{array}$

On November 30, 2019, a U.S. company, with a December 31 year-end, enters a forward purchase contract for €100,000 to be delivered on March 20, 2020, when the forward rate for March 20 delivery is $1.23/€. The forward contract does not qualify as a hedge. At year-end, the forward rate for delivery on March 30 is $1.21/€. The company closes the contract at its expiration date, when the spot rate is $1.24/€. At what amount are gains and losses reported in income on the forward in 2019 and 2020?
$\quad$$\quad$$\begin{array}{llcc}& \underline{ 2019 } & &&&&&& \underline {2020 } \\\end{array}$

A) $\begin{array}{lrr}\$ 0&&&&&&&&& \$ 1,000 \text { gain }\end{array}$
B) $\begin{array}{lrr}\$ 0&&&&&&&&&\$ 1,000 \text { loss }\end{array}$
C) $\begin{array}{lrr}\$ 2,000 \text { gain } &&&&& \$ 3,000 \text { loss}\end{array}$
D) $\begin{array}{lrr}\$ 2,000 \text { loss }&&&&& \$ 3,000 \text { gain}\end{array}$