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.

A