On November 1, a French Company Purchased Machinery from an American

On November 1, a French company purchased machinery from an American company for 800,000 euros when the exchange rate was $0.83. When preparing financial statements on December 31, assuming the rate for Euros was $0.88, what amount of gain or loss should the American company report?

A) $40,000 gain.
B) $40,000 loss.
C) $19,000 gain.
D) No gain or loss would be reporteD.€800,000 x ($0.88 - $0.83) = $40,000 gain