An American Company Makes a Credit Purchase of Goods from a Company

Multiple Choice

An American company makes a credit purchase of goods from a company in London for 1,000 British pounds.On the date of purchase,the exchange rate was $1.65 per pound.However,on the date of payment,the rate had declined to $1.60 per pound.As a result,the American company would record

A) an exchange gain of $50.
B) an exchange loss of $1,600.
C) an exchange loss of $50.
D) no exchange gain or loss.