If management of a company decides to accept clients to pay for services in cryptocurrency, then management should consider all the following actions in order to mitigate risk of exchang fluctuation EXCEPT

1. Maintain a adequate amount of cryptocurrency asset at all times.
2. Price services rendered in Canadian dollars on sales invoices.
3. Sell the cryptocurrency immediately after collecting.
4. Try to pay for some services with the cryptocurrency.

On January 1, 2020, Canadian Music International (CMI), a manufacturer of high-end recording equipment based in Toronto, shipped US$120,000 worth of inventory to its main U.S. distributor in Chicago, with full payment of these goods due by February 28, 2020. CMI has a January 31 year end. A list of significant dates and exchange rates is shown below.

Transaction Date: January 1, 2020US $1 = CDN $1.141Year-End Date: January 31, 2020US $1 = CDN $1.142Settlement Date: February 28, 2020US $1 = CDN $1.145

The invoice price billed by CMI was US$120,000.

What is the amount of CMI's foreign exchange gain or loss at year-end?

1. CDN$120 loss CDN$480 gain CDN$120 gain Nil; foreign exchange gains or losses are deferred to settlement

At what value would CMI record the initial sale to its American distributor?

CDN$137,400 US$120,000 CDN$120,000 CDN$136,920