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On October 25, 2020, a U.S. company sold merchandise on credit to a customer in Spain at an invoice price of 1,000, when the exchange

On October 25, 2020, a U.S. company sold merchandise on credit to a customer in Spain at an invoice price of 1,000, when the exchange rate was $1.25/. On December 31, 2020, the U.S. company's year-end, the exchange rate was $1.257/. On February 1, 2021, when the exchange rate was 1.23, the U.S. company received 1,000 in payment for the merchandise. The U.S. company's exchange gain or loss for 2020 is

A.

$20 gain

B.

$7 loss

C.

$20 loss

D.

$7 gain

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