Assume that our company incurs a Euro-denominated payable when the exchange rate is $1.20 : 1 and that the $US weakens to $1.27 : 1 before the payable is paid:

Select one:

A. Our company will recognize the gain on its next statement date.

B. Our company will recognize the loss on its next statement date.

C. Our company will not recognize the loss until the payable is paid.

D. Our company will not recognize the gain until the payable is paid.