On January 1, 2016, Doron Inc. borrowed 5,000,000 Swedish krona (SEK) from a bank in Sweden. The loan has a four-year life and requires an annual interest payment of 4% (payable on the first of the year). The following exchange rates exist for the krona relative to the Canadian dollar: The functional currency of Doron is the CAD $.

Date SEK 1 = C$ January 1, 2016 .154 December 31, 2016 .157 Average 2016 .161 January 1, 2017 .167 December 31, 2017 .162 Average 2017 .159 January 1, 2018 .153 December 31, 2018 .149 Average 2018 .145 January 1, 2019 .147 December 31, 2019 .154 Average 2019 .152

The Balance of the Loan account at December 31, 2018 is:

a.$770,000 CAD

b.$745,000 CAD

c.$ 725,000 CAD

On January 1, 2016, Toner Inc. borrowed 5,000,000 Swedish krona (SEK) from a bank in Sweden. The loan has a four-year life and requires an annual interest payment of 4% (payable on the first of the year). The following exchange rates exist for the krona relative to the Canadian dollar: The functional currency of Toner is the CAD $.

Date SEK 1=C$ January 1, 2016 .154 December 31, 2016 .157 Average 2016 .161 January 1, 2017 .167 December 31, 2017 .162 Average 2017 .159 January 1, 2018 .153 December 31, 2018 .149 Average 2018 .145 January 1, 2019 .147 December 31, 2019 .154 Average 2019 .152

The interest expense in 2019 would be:

a.$30,800 CAD

b.$29,400 CAD

c.$30,400 CAD