Santa Barbara Company, a U

Multiple Choice

Santa Barbara Company, a U.S. company, purchased merchandise on account from a company in England. The price was 1300 British pounds. At the time of the purchase, the exchange rate for a British pound was $1.54. At the time Santa Barbara Company paid for the merchandise, the exchange rate for a British pound was $1.58. What is the amount of the gain or loss recorded by the Santa Barbara Company upon payment?

A) Foreign currency transaction gain $52
B) Foreign currency transaction loss $52
C) Foreign currency translation gain $2054
D) Foreign currency translation loss $2054