TOPIC: FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION

On September 1, 20x0, Easy Company purchased FC15,000 worth of inventory items on account due on March 1, 20x1. The Company entered into a forward contract to hedge this transaction on October 1, 20x0. On November 1, 20x0, the company reported sales on account of FC25,000 due on January 31, 20x1. The company entered into a forward contract to hedge the transaction on the same date. The related spot and forward rates of the finance company are as follows: Spot rates Forward Rates Buying Selling September 1, 20x0 15 14 16 October 1, 20x0 13 15 17 November 1, 20x0 15 12 17 December 31, 20x0 16 14 18 January 31, 20x1 17 17 19 March 1, 20x1 16 14 20 Determine the net forex gain/(loss) on Easy Company's net income for 20x1