Madison Paving Company purchased equipment for 350,000 British pounds from a supplier in London on July 7, 2017. Payment in British pounds is due on Sept. 7, 2017. The exchange rates to purchase one pound is as follows: On its August 31, 2017 income statement, what amount should Madison Paving report as a foreign exchange transaction gain:

Question

Madison Paving Company purchased equipment for 350,000 British pounds from a supplier in London on July 7, 2017. Payment in British pounds is due on Sept. 7, 2017. The exchange rates to purchase one pound is as follows:  On its August 31, 2017 income statement, what amount should Madison Paving report as a foreign exchange transaction gain:

Quizplus · Accepted Answer

The Answer is C

Madison Paving Company Purchased Equipment for 350,000 British Pounds from a Supplier