RAVI COMPANY sold merchandise to a foreign company on April 1, 2019 for FC35,000 payable on August 31, 2019. At the time of sale, the spot rate was P27 per foreign currency. By the fiscal year ending June 30, 2019, the exchange rate was P16 per foreign currency and P19 per foreign currency when payment was received. (FC= FOREIGN CURRENCY; P = Philippine Peso)

Compute the amount to be reported as foreign exchange gain or loss on the company's current earnings.

a)P 280,000 gain

b)P 385,000 loss

c)P 280,000 loss

d)P 385,000 gain