Assume That Aero Agrees to Purchase US$50,000 for C$52,000 on January

question 57

Multiple Choice

Assume that Aero agrees to purchase US$50,000 for C$52,000 on January 15,2018.The exchange rate at year-end is US$1 = C$0.98 and the January 15,2018 exchange rate is US$1 = C$0.97.What journal entry is required at Jan 15,2013?

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