Question: On September 1, 2014, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for 250,000 euros. Terms of the sale require payment in euros on February 1, 2015. On September 1, 2014, the spot exchange rate was $1.30 per euro. At Cano's year-end on December 31, 2014, the spot rate was $1.28, but the rate increased to $1.33 by February 1, 2015, when payment was received.
Required: 1. What foreign currency transaction gain or loss should be recorded in 2014?
2. What foreign currency transaction gain or loss should be recorded in 2015?