Drayden Mfg., a U.S. corporation, sold automobile parts on credit to a British company on May 10, 2016. Drayden received payment of 40,000 British pounds on June 10, 2016. The exchange rate was 1 = $2.01 on May 10 and 1 = 2.10 on June 10. What amount of foreign exchange gain or loss should be recognized?

A. No gain or loss at time of payment.

B. 3,600 loss

C. Gains or losses recognized at year end only.

D. 3,600 gain