Levi Corporation (a U. S. company) has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On December 2, 20X1, Levi sold confectionary items to a foreign company at a price of 50,000 yen when the direct exchange rate was 1 yen = $1.12. The foreign exchange gain or loss on Levi’s records at year-end for this transaction will be:
a. No gain or loss is reported.
b. $1,500 loss
c. $1,500 gain