RXN's Year-End Is on December 31 *For Contracts Expiring on March 1, 2020
What Is the When

Multiple Choice

RXN's year-end is on December 31. On November 1, 2019 when the U.S. dollar was worth CDN$1.365, RXN sold merchandise to an American client for US$300,000. Full payment of this invoice was expected by March 1, 2020. On December 1, the spot rate was CDN$1.3450 and the three-month forward rate was CDN$1.3250. In order to minimize its Foreign Exchange risk and exposure, RXN entered into a forward contract with its bank on December 1, 2019 to deliver US$300,000 in three months' time. The spot rate at year-end was CDN$1.36 and the forward rate from December 31, 2019 to March 1, 2020 was CDN$1.34. On March 1, 2020, RXN received the US$300,000 from its client and settled its contract with the bank. The forward contract was to be accounted for as a fair value hedge of the US dollar receivable.
Significant dates and exchange rates pertaining to this transaction are as follows:
$$\begin{array} { | l | r | r | } \hline & \text { Spat Rates } & \text { For ward Rates } \\\hline \begin{array} { l } \text { Novernber } 1,2019 \\\text { (Trarsaction date) }\end{array} & \text { US } \$ 1 = \text { CDN } \$ 1.365 & \\\hline \begin{array} { l } \text { December } 1,2019 \text { (Hedged } \\\text { date) }\end{array} & \text { US } \$ 1 = \text { CDN\$1.3450 } & \text { US\$1 = CDN\$1.3250 } \\\hline \begin{array} { l } \text { December } 31,2019 \text { (Year- } \\\text { end) }\end{array} & \text { CDN } \$ 1.36 & \text { CDN } \$ 1.34 \\\hline \begin{array} { l } \text { March } 1,2020 \text { (Settlement } \\\text { date) }\end{array} & \text { US } \$ 1 = \text { CDN } \$ 1.368 & \text { US } \$ 1 = \text { CDN\$1.368. } \\\hline\end{array}$$ *for contracts expiring on March 1, 2020
What is the amount of the exchange gain or loss from the recognition of the hedge discount recognized during 2019?

A) A loss of CDN$4,500.
B) A loss of CDN$3,000.
C) A gain of $ CDN4,500.
D) Nil.