Kreighton Manufacturing purchased on credit 54,000 worth of production materials from a British company when...
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Accounting
Kreighton Manufacturing purchased on credit 54,000 worth of production materials from a British company when the exchange rate was $2.01 per British pound. At the year-end balance sheet date the exchange rate increased to $2.80. If the liability is still unpaid at that time, Kreighton must record a:
Multiple Choice
a. gain of $151,200.
b. loss of $151,200.
c. gain of $42,660.
d. loss of $42,660.
e. neither a gain nor loss.
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