13. Problem 19.14 (Exchange Gains and Losses)

You are the vice president of Worldwide InfoXchange, headquartered in Minneapolis, Minnesota. All shareholders of the firm live in the United States. Earlier this month you obtained a loan of 7 million Canadian dollars from a bank in Toronto to finance the construction of a new plant in Montreal. At the time the loan was received, the exchange rate was $0.82 to the Canadian dollar. By the end of the month, it has unexpectedly dropped to $0.71.

Has your company made a gain or a loss as a result?

-Select- (Gain, Loss)

By how much? Enter your answer as a positive value. Round your answer to the nearest dollar.

$