Pigskin Co

Multiple Choice

Pigskin Co., a U.S.corporation, sold inventory on credit to a British company on April 8, 2018.Pigskin received payment of 35,000 British pounds on May 8, 2018.The exchange rate was £1 = $1.54 on April 8 and £1 = 1.43 on May 8.What amount of foreign exchange gain or loss should be recognized? (round to the nearest dollar)

A) $10,500 loss
B) $10,500 gain
C) $ 1,750 loss
D) $ 3,850 loss
E) No gain or loss should be recognized.