Advanced Financial Accounting, please help with explanations

Franklin Corp. (a U.S.-based company) sold inventory to a Canadian company on December 15, 2014, with payment of 10,000 CAD to be received on

January 15, 2015. The following exchange rates applied:

Date Spot rate Forward Rate

(to Jan 15, 2015)

December 15, 2014 $0.90 $0.98

December 31, 2014 $0.92 $0.93

January 15, 2015 $0.95 N/A

Assuming a forward contract was not entered into, what would be the net impact on Franklin Corp.'s 2014 income statement related to this transaction?

$ 200 (gain).

$ 200 (loss).

. $ - 0 -

$ 500 (loss)

$ 500 (gain)