Kreighton Manufacturing purchased on credit 41,000 worth of production materials from a British company when the exchange rate was $1.88 per British pound. At the year-end balance sheet date the exchange rate increased to $2.67. If the liability is still unpaid at that time, Kreighton must record a: loss of $32,390. loss of $109,470. neither a gain nor loss. gain of $109,470. gain of $32,390.