Franklin Corp. (a U.S.-based company) sold inventory to a Canadian company on December 15, 2019, with payment of 10,000 CAD to be received on

January 15, 2020. The following exchange rates applied:

DateSpot rateForward Rate

(to Jan 15, 2020)

December 15, 2019$0.90$0.98

December 31, 2019$0.92$0.93

January 15, 2020$0.95N/A

Assuming a forward contract was not entered into, what would be the net impact on Franklin Corp.'s 2019 income statement related to this transaction?

Multiple Choice

$ 500 (gain)

$ 500 (loss)

$ 200 (gain).

$ 200 (loss).

. $ - 0 -