42 . CPA - 08607 On June 1 , Year 1 , ABC Co . issued a 200 , 000- euro purchase order for equipment to be supplied by a German company . ABC's functional currency is the U.S . dollar . The equipment was delivered to ABC on November 1 , Year 1 , and ABC recorded a payable due to the German company . ABC paid for the equipment on January 31 , Year 2 . The following are the exchange rates in effect June 1 . Year 1 1 euro = 1.40 US dollars November 1 . Year 1 1 euro = 1.50 U.S . dollars December 31 Year 1 1 euro = 1.35 US dollars January 31 , Year 2 1 euro = 1.30 U.S . dollars Under IFRS . what is the foreign currency gain or loss that ABC should record for the year ended December 31 . Year 1 ? A loss of $30 000 A loss of 520.000 A gain of $10 000 A gain of $30 000