Pigskin Co , a U S corporation, sold inventory on credit to a British company on April 8, 2011 Pigskin received payment of 35,000 British pounds on May 8, 2011 The exchange rate was 1 $1 54 on April 8 and 1 1 43 on May 8 What amount of foreign exchange gain or loss should be recognized ( round to t...

Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2011.

Question:

Pigskin Co., a U.S. corporation, sold inventory on credit to a British company on April 8, 2011. Pigskin received payment of 35,000 British pounds on May 8, 2011. The was £1 = $1.54 on April 8 and £1 = 1.43 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. $3,850 loss
E. No gain or loss should be recognized.
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...