Samsung Electronics of Korea sells 25 million Chilean pesos worth of semiconductors to Empresa Nacional de Telecomunicaciones S.A., Chile, on January 1, 2019.

The sale is invoiced in Chilean pesos (contract for settlement). The spot exchange rate on January 1, 2019, was CLP 0.623 5 = 1.0 KRW, so a sale of 25 million Chilean pesos is recorded on Samsung’s financial statements as KRW 40,096,230.95. If Empresa Nacional de Telecomunicaciones S.A. paid 2 months later, on March 1, the spot rate is CLP 0.582 9 = 1.0

 KRW. If Empresa Nacional de Telecomunicaciones S.A. did not pay until April 1 (90 days), the spot rate is CLP 0.598 3 = 1.0 KRW.

a. Complete the sale and settlement worksheet below.

b. How would the gross margin on the sale change over the three different settlement dates?

c. If the total sale was settled on April 1, 2019, what would be the foreign exchange gain (loss)

recorded on the sale?