On October 1, 2020, Castro Company., a U.S. corporation, sold merchandise to a foreign firm for 300,000 local currency units (LCUS). Terms of the sale require payment in LCUS on February 1, 2021. On October 1, 2020, the spot exchange rate was $0.25 per LCU. On December 31, 2020, Castro's year-end, the spot rate was $0.23, but the rate increased to $0.28 by February 1, 2021, when payment was received. How much should Castro report as foreign currency transaction gain or loss in its 2021 income statement?

Choices:

$0

$15,000 gain

$9,000 gain

$6,000 loss