Assume that a Canadian company borrowed US($325,000), for five years, when US($1) = Cdn($1.10). If the exchange
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Assume that a Canadian company borrowed US\($325,000\), for five years, when US\($1\) = Cdn\($1.10\). If the exchange rate at the end of the first year is US\($1\) = Cdn\($1.08\), and at the end of the second year is US\($1\) = Cdn\($1.16\), how much exchange gain or loss would be shown in earnings in the second year?
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To calculate the exchange gain or loss we need to determine the difference in the Canadian ...View the full answer
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