Assume That MAK Agrees to Purchase US$500,000 for C$550,000 on January

question 74

Multiple Choice

Assume that MAK agrees to purchase US$500,000 for C$550,000 on January 15,2013.The exchange rate at year end is US$1 = C$0.95 and the January 15,2013 exchange rate is US$1 = C$0.97.What journal entry is required at year end?

• A)0
• B)$65,000 loss.
• C)$75,000 gain.
• D)$75,000 loss.