The Latimore Company invested $8.8 million in a new plant in Italy when the exchange rate was 1.1500 euros to the dollar. At the end of the year, the rate was 1.2000 euros to the dollar.

1. Did Latimore make or lose money on the exchange rate movement?

   Lose money.Make money.Lose money.

   How much? Do not round your intermediate calculations. Round your answer to the nearest dollar. Enter your answer in whole dollars. For example, an answer of $1.2 million should be entered as 1,200,000 not 1.2. $ fill in the blank 2
2. What kind of exchange rate gain or loss was it?

   A transaction gain.A transaction loss.A translation gain.A translation loss.A translation loss.

3. What was the tax impact if Latimores marginal tax rate is 40%? If an answer is zero, enter "0". $ fill in the blank 4

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