On November 25, Year 1, Smith Inc., a U.S. company, sold merchandise on account to a European company for 5,000 euros. At that time, one U.S dollar could purchase 0.75 euros. On December 31, Year 1, one euro could purchase $1.43 U.S. dollars. On January 25, Year 2, when the payment was made, one U.S. dollar could purchase 0.80 euros. What amount would the company recognize as a gain (loss) from foreign currency transactions on the December 31, Year 1, income statement? $0 O $400 loss $500 gain $900 gain