Assume That on January 15, 2021 Aero's Agrees to Purchase

question 44

Multiple Choice

Assume that on January 15, 2021 Aero's agrees to purchase US$50,000 for C$52,000 for delivery on January 15, 2022. The exchange rate at Aero's December 31 year-end is US$1 = C$.98 and the January 15, 2022 exchange rate is US$1 = C$.97. What is the foreign exchange gain or loss recognized at January 15, 2022?

• A)$500 loss.
• B)$500 gain.
• C)$3,500 loss.
• D)$3,500 gain.

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