Import/Export Company, a U.S. company, made a number of import purchases and export sales denominated in foreign currency in 2015. Information related to these transactions is summarized in the following table. The company made each purchase or sale on the date in the Transaction Date column and made payment in foreign currency or received payment on the date in the Settlement Date column.

Balance Sheet 3/31/17 5/1/17 Forward contract (liability) $(1,980)* $ 0 AOCI (credit) (2,020) 0 Change in cash 0 (106,000) Foreign Currency Type of Transaction Amount in Foreign Currency Transaction Date Settlement Date Brazilian real (BRL) Import purchase (130,000) 1/10/2015 5/10/2015 Chilean peso (CLP) Import purchase (30,000,000) 1/10/2015 5/10/2015 Swiss franc (CHF) Export sale 50,000 1/10/2015 4/10/2015 Swiss franc (CHF) Import purchase (50,000) 4/10/2015 7/10/2015 Euro Export sale 45,000 1/10/2015 4/10/2015 Euro Export sale 45,000 4/10/2015 7/10/2015 Chinese yuan (CNY) Import purchase (300,000) 1/10/2015 7/10/2015 Required 1. Create an electronic spreadsheet with the information from the preceding table. Label columns as follows: Foreign Currency Type of Transaction Amount in Foreign Currency Transaction Date Exchange Rate at Transaction Date $ Value at Transaction Date Settlement Date Exchange Rate at Settlement Date $ Value at Settlement Date Foreign Exchange Gain (Loss) 2. Use historical exchange rate information available on the Internet at www.x-rates.com, Historic Lookup, to find the 2015 exchange rates between the U.S. dollar and each foreign currency on the relevant transaction and settlement dates. 3. Complete the electronic spreadsheet to determine the foreign exchange gain (loss) on each transaction. Determine the total net foreign exchange gain (loss) reported in Import/Export Companys 2015 income statement. 4. Explain why a foreign exchange gain arises for some transactions and a foreign exchange loss occurs for other transactions.