Madison Paving Company Purchased Equipment for 350,000 British Pounds from a Supplier

Multiple Choice

Madison Paving Company purchased equipment for 350,000 British pounds from a supplier in London on July 7,2017.Payment in British pounds is due on Sept.7,2017.The exchange rates to purchase one pound is as follows: On its August 31,2017 income statement,what amount should Madison Paving report as a foreign exchange transaction gain:

A) $14,000.
B) $7,000.
C) $10,500.
D) $0.