On June 18,Johnson Company (A U

Multiple Choice

On June 18,Johnson Company (a U.S.company) sold merchandise to the Frater Company of Denmark for 60,000 Euros,with a payment due in 60 days.If the exchange rate was $1.14 per euro on the date of sale and $1.35 per euro on the date of payment,Johnson Company should recognize a foreign exchange gain or loss in the amount of:

A) $60,000 gain
B) $60,000 loss
C) $68,400 loss
D) $12,600 gain
E) $12,600 loss