On July 1, 2015, Houghton Company borrowed 200,000 euros from a foreign lender evidewnced by an interest-bearing note due on July 1, 2016. The note is denominated in euros. The U.S. dollar equivalent of the note principal is as follows:

Date	Amount
July 1, 2015 (date borrowed)	$195,000
December 31, 2015 (Houghton's year end)	220,000
July 1, 2016 (date repaid)	230,000

In its 2016 income statement, what amount should Houghton include as a foreign exchange gain or loss on the note?

Group of answer choices

a $35,000 gain.

b $35,000 loss.

c $10,000 gain.

d $10,000 loss.