Assume That on January 15, 2021 Singh Agrees to Purchase

question 41

Multiple Choice

Assume that on January 15, 2021 Singh agrees to purchase US$100,000 for C$117,000 for delivery on January 15, 2022. The exchange rate at Singh's December 31 year-end is US$1 = C$1.20 and the January 15, 2022 exchange rate is US$1 = C$1.19. What is the foreign exchange gain or loss recognized at January 15, 2022?

• A)$1,000 loss.
• B)$1,000 gain.
• C)$2,000 loss.
• D)$2,000 gain.