A US Firm Has Purchased, for 50,000 FCs, an Electric Generator

Multiple Choice

A U.S. firm has purchased, for 50,000 FCs, an electric generator from a foreign firm. The exchange rates were 1 FC = $0.80 on the delivery date and 1 FC = $0.76 when the payable was paid. What is the final recorded value if the two-transaction method is used?

A) $40,000
B) $38,000
C) $42,000
D) $50,000