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

Multiple Choice

Assume that Barun 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 Jan 15,2013?

A) $10,000 gain.
B) $10,000 loss.
C) $75,000 gain.
D) $75,000 loss.