On January 1, a German Company Purchased Merchandise from a U.S

On January 1, a German company purchased merchandise from a U.S. firm for $50,000, payable on March 1. The exchange rate for euros on January 1 was $0.70. If the exchange rate increases to $0.72 on March 1, what amount of gain or loss would the U.S. firm report related to currency fluctuation?

A) $1,000 gain.
B) $1,000 loss.
C) $500 gain.
D) No gain or loss would be reporteD.The transaction was denominated in U.S. dollars.