Modern Advanced Accounting in Canada 8th edition Connect multilpe choice:

SJ Corporation, a Canadian corporation, has a December 31 year-end. On January 1, 2016, it borrowed US$2,000,000 from an American bank. The loan is scheduled to be repaid on December 31, 2020. Interest of 10% is paid annually on December 31. The following exchange rates existed on the dates significant for accounting purposes:

January 1, 2016	US$1.00 = C$1.21
Average 2016	US$1.00 = C$1.18
December 31, 2016	US$1.00 = C$1.16
Average 2017	US$1.00 = C$1.10
December 31, 2017	US$1.00 = C$1.02

Which of the following is the total exchange gain or loss that will appear in the 2017 income statement with respect to the loan?

$264,000 gain

$16,000 gain

$280,000 gain

$296,000 gain