Question - Lorien Company is a U.S. consulting company that keeps its financial records in U.S. dollars. On November 1 of Year 1, Lorien provided consulting services to a Thai company on account. The fee for the services was 500,000 Thai baht. Lorien COLLECTED the cash, in Thai baht, on March 1 of Year 2. The exchange rate for the Thai baht (relative to the U.S. dollar) was as follows on the indicated dates.November 1, Year 1one Thai baht = $0.020December 31, Year 1one Thai baht = $0.015March 1, Year 2one Thai baht = $0.018 Assume that Lorien has no other foreign currency transactions and that all necessary journal entries are recorded correctly. What amount of FOREIGN EXCHANGE gain or loss should Lorien report for Year 2?
1,000 loss
1,000 gain
2,500 loss
2,500 gain
1,500 loss
1,500 gain
3,500 loss
3,500 gain