Ted Ltd receives a loan of $100,000 from Smith Ltd on 1 July 2021. Ted Ltd has the contractual obligation to repay the loan in 3 years time. Ted Ltd currently has a AA credit rating and can borrow at 7%. On 30 June 2022, Ted Ltds credit rating increases to a AAA and its borrowing rate reduces to 5%.

What is the impact on Ted Ltds Financial Statements on 30 June 2022 given the change of credit rating?

Group of answer choices

A loss of $3,359

A loss of $4,753

No impact

A gain of $3,359