On April 01, 2016, ABC Inc., a Canadian Corporation, obtained a 3-year loan in US$ funds from a bank in Boston (USA). Details are as follows:

- Four year term loan, U.S. $500,000 - Interest is 6% payable Dec 31 every year - ABC Inc.'s fiscal-end is on December 31.

Exchange rates:

1 January 20X6	U.S. $1 = Cdn. $1.35
31 December 20X6	U.S. $1 = Cdn. $1.40
31 December 20X7	U.S. $1 = Cdn. $1.42
31 December 20X8	U.S. $1 = Cdn. $.136
31 December 20X9	U.S. $1 = Cdn. $1.39

Note: The average interest rate for the period from April 01, 2016 to December 31, 2016 was US$1 = Cdn$1.38