Multiple Choice
Pigskin Co. ,a U.S.corporation,sold inventory on credit to a British company on April 8,2008.Pigskin received payment of 35,000 British pounds on May 8,2008.The exchange rate was $1 = £0.65 on April 8 and $1 = £0.70 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) $3,846 loss
E) No gain or loss should be recognized.
Correct Answer:
Verified
Correct Answer:
Verified
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