The Following Information Pertains to Questions

question 12

Multiple Choice

The following information pertains to questions
XYZ Corp has a calendar year end.On January 1,2010,the company borrowed $5,000,000 U.S.dollars from an American Bank.The loan is to be repaid on December 31,2013 and requires interest at 5% to be paid every December 31.The loan and applicable interest are both to be repaid in U.S.dollars.XYZ does not hedge to minimize its foreign exchange risk.
The following exchange rates were in effect throughout the term of the loan: The average rates in effect for 2010 and 2011 were as follows:
-At would amount (in Canadian Dollars) would XYZ record its initial Loan Liability on January 1,2010.

• A)$5,476,500
• B)$5,750,000
• C)$5,747,500
• D)$5,471,500

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Definitions:

Hypnotic Susceptibility

The degree to which a person is able to enter into a hypnotic state, encompassing factors such as openness and responsiveness.

Inherited

Attributes, traits, or conditions that are passed from parents to their offspring through genes.

Circadian Rhythms

Natural physical, mental, and behavioral changes that follow a 24-hour cycle, influencing sleep, wakefulness, and other bodily functions.

Alcohol Use

The consumption of beverages containing ethanol, which can range from moderate drinking to alcohol abuse and dependence.