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Assume That MAK Agrees to Purchase US$500,000 for C$550,000 on January

Question 74

Multiple Choice

Assume that MAK agrees to purchase US$500,000 for C$550,000 on January 15,2013.The exchange rate at year end is US$1 = C$0.95 and the January 15,2013 exchange rate is US$1 = C$0.97.What journal entry is required at year end?


A) 0
B) $65,000 loss.
C) $75,000 gain.
D) $75,000 loss.

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