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What is the amount of foreign exchange gain to be reported

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On June 1, 20X6, EXP Inc. borrowed US$200,000 from a U.S. bank. Interest is payable at the rate of 9% on May 31 each year. EXP's fiscal year end is December 31. Relevant exchange rate information follows:

June 1, 20X6 US$1 = C$1.24
December 31, 20X6 US$1 = C$1.23
Average for 20X6 (June to December) US$1 = C$1.22

Problem 1: What is the amount of foreign exchange gain to be reported on the statement of comprehensive income (SCI) of EXP for the year ended December 31, 20X6, related to the loan and loan interest?

a) $1,820 gain
b) $1,895 gain
c) $2,000 gain
d) $2,105 gain

Reference no: EM132727608

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