Assume That on January 15, 2021 Aero's Agrees to Purchase

Multiple Choice

Assume that on January 15, 2021 Aero's agrees to purchase US$50,000 for C$52,000 for delivery on January 15, 2022. The exchange rate at Aero's December 31 year-end is US$1 = C$.98 and the January 15, 2022 exchange rate is US$1 = C$.97. What is the foreign exchange gain or loss recognized at December 31, 2021?

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