Flynn Corporation purchased bicycles from a British manufacturer at a price of 37,000 British pounds on November 15, Year 1, with payment due in 60 days. Using the following exchange rates, what gain or loss from currency fluctuations should be recognized in Year 1 and Year 2, respectively? Nov. 15, Year 1 $1.70 per British pound Dec. 31, Year 1 $1.75 per British pound Jan. 15, Year 2 $1.73 per British pound a. A $1,850 loss in Year 1 and a $740 gain in Year 2. b. No gain or loss in Year 1 and a $1,110 loss in Year 2. C. A $1,850 gain in Year 1 and a $740 loss in Year 2. d. No gain or loss in Year 1 and a $1,110 gain in Year 2