Phan Ltd, a Canadian Company, Sold Goods to a Foreign Customer

Multiple Choice

Phan Ltd., a Canadian company, sold goods to a foreign customer for 1,000,000 foreign currency (FC) units, which was equivalent to $500,000 CAD. By the time the customer paid Phan, the exchange rates had changed and 1,000,000 FC units was equivalent to $515,000 CAD. How should the resulting $15,000 CAD difference between the sale and payment dates be treated?

A) As an increase in sales
B) As a decrease to cost of sales
C) As a realized gain
D) As an unrealized gain