On January 1, 2012, Gupta Inc What Is the Exchange Gain (Loss)recognized in Income During 2013

Multiple Choice

On January 1, 2012, Gupta Inc. issued 10,000,000 Euros (€) of bonds payable. The bonds are due on December 31, 2014. Over the life of the bonds, the exchange rates were as follows: $$\begin{array} { | l | l | } \hline \text { January } 1,2012 & € 1 = \$ 1.40 \\\hline \text { December } 31,2012 & € 1 = \$ 1.45 \\\hline \text { December } 31,2013 & € 1 = \$ 1.50 \\\hline \text { December } 31,2014 & € 1 = \$ 1.48 \\\hline\end{array}$$ What is the exchange gain (loss) recognized in income during 2013?

A) $(500,000)
B) $500,000
C) $1,000,000
D) $(1,000,000)