SJ Corporation, a Canadian corporation, has a December 31 year-end. On January 1, 2019, it...
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SJ Corporation, a Canadian corporation, has a December 31 year-end. On January 1, 2019, it borrowed US$2,000,000 from an American bank. The loan is scheduled to be repaid on December 31, 2023. Interest of 10% is paid annually on December 31. The following exchange rates existed on the dates significant for accounting purposes:
January 1, 2019
US$1.00 = C$1.21
Average 2019
US$1.00 = C$1.18
December 31, 2019
US$1.00 = C$1.16
Average 2020
US$1.00 = C$1.10
December 31, 2020
US$1.00 = C$1.02
What is SJ's exchange gain relating to the interest paid for the year ended December 31, 2019?
a) $0
b) $2,000 gain
c) $6,000 gain
d) $10,000 gain
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