Melbourne Ltd receives a loan of $200,000 from Sydney Ltd on 1 July 2022. Melbourne Ltd has the contractual obligation to repay the loan principal in 3 years time without any interests. Melbourne Ltd currently has a AA credit rating and can borrow at 8%. On 30 June 2023, Melbourne Ltds credit rating increases to AAA and its borrowing rate reduces to 7%.

What is the impact on Melbourne Ltds Financial Statements on 30 June 2023 given the change of credit rating?

Group of answer choices

A gain of $4,493

A loss of $3,220

A gain of $3,220

A loss of $4,493