Greco, Inc

Multiple Choice

Greco, Inc. a U.S. corporation, bought machine parts from Franco Company of Germany on March 1, 2017, for 70,000 marks, when the spot rate for marks was $0.5395. Greco's year-end was March 31, 2017, when the spot rate for marks was $0.5445. Greco bought 70,000 marks and paid the invoice on April 20, 2017, when the spot rate was $0.5495. How much should be shown in Greco's income statements as foreign exchange (transaction) gain or loss for the years ended March 31, 2017 and 2018?

A) 2017, $0; 2018, $0
B) 2017, $0; 2018, $350 loss
C) 2017, $350 loss; 2018, 0
D) 2017, $350 loss; 2018, $350 loss