On November 1, 2017, Destiny Corporation purchased jewelry items from a foreign company at a price of LCU 5,000 when the direct exchange rate was 1 LCU = $1.20. The account has not been settled as of December 31, 2017, when the exchange rate has decreased to 1 LCU = $1.10. The foreign exchange gain or loss on Destiney's records at year-end for this transaction will be:

$500 loss

$500 gain

$5,500

$378 gain