Problem
Modern Advanced Accounting in Canada 8th edition Connect multilpe choice:
SJ Corporation, a Canadian corporation, has a December 31 year-end. On January 1, 2016, it borrowed US$2,000,000 from an American bank. The loan is scheduled to be repaid on December 31, 2020. Interest of 10% is paid annually on December 31. The following exchange rates existed on the dates significant for accounting purposes:
January 1, 2016 US$1.00 = C$1.21
Average 2016 US$1.00 = C$1.18
December 31, 2016 US$1.00 = C$1.16
Average 2017 US$1.00 = C$1.10
December 31, 2017 US$1.00 = C$1.02
Which of the given is the total exchange gain or loss that will appear in the 2017 income statement with respect to the loan?