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

Question 109

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 year-end?


A) $3,000 loss.
B) $3,000 gain.
C) $3,500 loss.
D) $3,500 gain.

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