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, $1 could purchase 0.75 euros. On December 31, Year 1, one euro could purchase $1.35. On January 25, Year 2, when the payment was made, $1 could purchase 0.85 euros. What amount would the company recognize as a gain (loss) from foreign currency transactions when the receivable was collected? O $1,250 gain O $750 loss $850 loss $0