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Ted Ltd receives a loan of $200,000 from Smith Ltd on 1 July 2019 . Ted Ltd has the contractual obligation to repay the loan

Ted Ltd receives a loan of $200,000 from Smith Ltd on 1 July 2019 . Ted Ltd has the contractual obligation to repay the loan in 3 years' time. Ted Ltd currently has a AAA credit rating and can borrow at 5%. On 30 June 2020 , Ted Ltd's credit rating decreases to a AA and its borrowing rate worsens to 7%. What is the impact on Ted Ltd's Financial Statements on 30 June 2020 given the change of credit rating? A gain of $9,508 No impact A gain of $6,718 A loss of $9,508

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