Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a canadian company has a calendar year end. on jan

A Canadian company has a calendar year end. On January 1, the company borrowed $500,000...

60.1K

Verified Solution

Question

Accounting

A Canadian company has a calendar year end. On January 1, the company borrowed $500,000 U.S. dollars. The loan is to be repaid in four years, and interest at 8% to be paid every December 31. The loan and applicable interest are both to be repaid in U.S. dollars. The following exchange rates were in effect during the first year of the loan:

January 1 US $1 = CDN $1.465

December 31 US $1 = CDN $1.480

Average US $1 = CDN $1.475

What is the combined exchange gain or loss for both the loan and interest?

$6,800 gain

$5,900 loss

$6,850 loss

$8,250 gain

$7,700 loss

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You are auditing a bank, and someone provides you with ananonymous tip that an...

Accounting
Q

A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be...

Finance
Q

Include all the information below about Skin color and sun exposure : ( its genetic mutation(s), and...

Biology
Q

1. What specific numerical evidence would you give to explain why the Great Depression was so...

Economics
Q

(b) Show that the three bisectors of the an- gles of a triangle are concurrent, that...

Basic Math
Q

Find a news story or podcast about intellectual property issues involving a popular logo, brand, trade...

General Management
Q

Over time, solar power needs more land and water than mining for coal. TrueFalse

Biology
Q

The taxon species may be defined by reproductive isolation and _____variationmorphologydichotomy

Biology
Q

A cooling curve is plotted between the temperature of a hot body and time Which...

Physics
Q

Solve the partial differential equation (D - DD' - 2D')z = (2x+xy-y) sin(xy) - cos(xy).

Calculus
Q

Rogers Products uses a periodic inventory system. The companys records show the beginning inventory of...

Accounting
Q

College Accounting Chapters 1-13 15th Edition Exercise 7.7 Objective 7-7 Computing...

Accounting