Multiple Choice
Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound.At the year-end balance sheet date the exchange rate increased to $2.76.If the liability is still unpaid at that time,Kreighton must record a:
A) gain of $39,500.
B) loss of $39,500.
C) gain of $138,000.
D) loss of $138,000.
E) neither a gain nor loss.
Correct Answer:
Verified
Correct Answer:
Verified
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