EXCHANGE GAINS AND LOSSES You are the vice president of International InfoXchange, headquartered inChicago, Illinois. All shareholders of the firmlive in theUnited States. Earlier thismonth you obtained a loan of 5million Canadian dollars froma bank in Toronto to finance the construction of a new plant in Montreal. At the time the loan was received, the exchange ratewas $0 98 to the Canadian dollar. By the end of themonth, it has unexpectedly dropped to

$0 88. Has your company made a gain or a loss as a result, and by how much?

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