On October 1, 2013, Parent Company sold inventory to a company in England. The sale was for 900,000 British pounds and payment will be received on February 1, 2014. On October1, Parent entered into a forward contract to sell 900,000 British pounds on February 1 at the forward rate of $1.65. Spot rates for the British pound are as follows: October 1 $1.60 December 31 1.67 February 1 1.63 Parent has a December 31 fiscal year-end. Compute The transaction gain or loss on the exposed asset related to the sale in 2013 and 2014.

a 56000 b. -36000