On September 1, 2017, LN Company a Philippine Based Company ordered 1000 units of inventory from a U.S. Corporation for $25,000. The inventory was shipped and invoiced to LN firm on December 1, 2017 to be paid on February 1, 2018. LN's fiscal year end is December 31. Assume that LN did not engage in any form of hedging activity.

Items 11 to 14 are based on the following: On September 1, 2017, LN Company a Philippine Based Company ordered 1000 units of inventory from a U.S. Corporation for $25,000. The inventory was shipped and invoiced to LN firm on December 1, 2017 to be paid on February 1, 2018. LN's fiscal year end is December 31. Assume that LN did not engage in any form of hedging activity. The following are the spot rates for U.S. Dollars at various times are as follow: Buying Spot Rates Selling Spot Rates September 1, 2017 38.90 40.10 December 1, 2017 40.00 40.30 December 31, 2017 40.60 40.85 February 1, 2018 40.45 40.65 11. How much is the ForEx gain or (loss) on December 31, 2017? a. (6,250) b. (13,750) C. (15,000) d. (18,750)12. How much is the outstanding accounts payable as of December 31, 2017? a. 1,015,000 b. 1,016,250 C. 1,021,250 d. 1,035,000 13. How much is the ForEx gain or (Loss) on February 1, 2018? a. (5,000) b. 5,000 C. 3,750 d. (3,750) 14. How much is the Net ForEx gain or (loss)? a. 11,250 b. (11,250) C. 8,750 d. (8,750)