Kreighton Manufacturing purchased on credit £50,000 worth of production materials from a British company when the exchange rate was $1.97 per British pound. At the year-end balance sheet date, the exchange rate increased to $2.76. If the liability is still unpaid at that time, Kreighton must record a:
A. loss of $138,000.
B. loss of $39,500.
C. gain of $39,500.
D. neither a gain nor loss.
E. gain of $138,000.
Answer: B
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Which of the following administers the day-to-day operations of the United Nations?
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