Kettle Company purchased equipment for 375,000 British pounds from a supplier in London on July 3, 2014. Payment in British pounds is due on Sept. 3, 2014. The exchange rate to purchase one pound is as follows:

July 3

August 31, (year-end)

September 3

Spot-rate	1.57	1.59	1.54

On its August 31, 2014, income statement, what amount should Kettle report as a foreign exchange transaction gain: $11,250.

Are these direct exchange quotations or indirect exchange quotations?

Answer rating: 100% (QA)

As the payment is due on September 3 2014 and the purchase was done on July 3 2014 the gain ... View the full answer