Drake Corporation,a Domestic Corporation,conducts All of Its Transactions in the U.S.dollar.It

Drake Corporation,a domestic corporation,conducts all of its transactions in the U.S.dollar.It sells inventory for $1 million to a Canadian company when the exchange rate is $1US: $1.2Can.The Canadian company pays for the inventory when the exchange rate is $1US: $1.25Can.What is Drake's exchange gain or loss on this sale?

A) Drake's exchange loss is $50,000.
B) Drake's account receivable for the sale is $1 million (when the exchange rate is $1US: $1.2Can. ) and it collects on the receivable when the exchange rate is $1US: $1.25Can.Drake has an exchange gain of $50,000.
C) Drake's account receivable for the sale is $1 million (when the exchange rate is $1US: $1.2Can. ) .It collects on the receivable at $1US: $1.25Can.Drake has an exchange loss of $5,000.
D) Drake does not have an exchange gain or loss,since it conducts all of its transactions in the U.S.dollar.