Sydney Distributors Inc. (Sydney) entered into a contract to buy 10,000 metres of finished lumber for $3.00 per metre for resale purposes, intending to resell the lumber to retail lumber stores for $4.00 per metre. The contract was entered into on September 30, Year 1, for delivery on April 30, Year 2. Sydney must pay a $5,000 cancellation fee if it cancels the contract. Sydney's year end is December 31. In December of Year 1, Sydney's supplier reduced the price per metre due to adverse market conditions, and Sydney recorded an onerous contract of $2,500. On March 31, Year 2, Sydney's quarter end, it estimates that it can resell the lumber for $2.90 per metre. What is the impact, if any, that Sydney will recognize on its March 31, Year 2, statement of comprehensive income for its obligations under this contract? A. Reversal of loss on provision of $1,500 B. No gain or loss recognized C. Loss of $1,000 D. Loss of $1,500