Ryan Company Borrow $45,000 US When the Exchange Rate for US

question 38

Multiple Choice

Ryan Company borrow $45,000 US when the exchange rate for US $1.00 is Cdn.$1.46.When the debt was repaid the exchange rate changes to US $1.00 = Cdn.$1.38.Ryan Company records the amount on the date of exchange as:

• A) A foreign exchange loss of $3,600.
• B) A foreign exchange gain of $3,600.
• C) A foreign exchange gain of $62,100.
• D) A foreign exchange loss of $62,100.

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