On June 18, Wyman Company (a U.S. Company) sold merchandise to the Nielsen Company of Denmark for €60,000 (Euros), with a payment due in 60 days. If the exchange rate was $1.35 per euro on the date of sale and $1.14 per euro on the date of payment, Wyman Company should recognize a foreign exchange gain or loss in the amount of:
A. $12,600 loss.
B. $12,600 gain.
C. $60,000 gain.
D. $68,400 loss.
E. $60,000 loss.
Answer: A
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What will be an ideal response?