Kettle Company Purchased Equipment for 375,000 British Pounds from a Supplier

Multiple Choice

Kettle Company purchased equipment for 375,000 British pounds from a supplier in London on July 3,2017.Payment in British pounds is due on Sept.3,2017.The exchange rates to purchase one pound is as follows: On its August 31,2017,income statement,what amount should Kettle report as a foreign exchange transaction gain:

A) $18,750.
B) $3,750.
C) $11,250.
D) $0.