Wood, a U.S. corporation, owns Holz, a German corporation. Wood receives a dividend (non-Subpart F income) from Holz of 75,000. The average exchange rate for the year is $1US: 0.6, and the exchange rate on the date of the dividend distribution is $1US: 0.8. Woods exchange gain or loss is:

$15,000 loss.

$15,000 gain.

$0. There is no exchange gain or loss on a dividend distribution.

$75,000 gain.