The Prices are in U.S. dollars ($/C$).

	Spot rate	Forwarded rate for 4/15/17 delivery of Canadian dollars
November 15, 2016	$0.905	$0.895
December 31, 2016	0.965	0.950
March 1, 2017	0.920	0.915
April 15, 2017	0.940	0.940

Question 1: On November 15, 2016, a U.S. company delivery of merchandise costing C$1,000,000 from a Canadian supplier and records an account payable. On the same date, the company enters a forward contract locking in the U.S. dollar purchase price C$1,000,000, for delivery on April 15, 2017. The company's accounting year ends on December 31. Assuming the company still holds the merchandise at December 31, 2016, at what amount is the merchandise reported?

a.	$895,000
b.	$905,000
c.	$950,000
d.	$965,000

Question 2: Use the information from question 1. What is the net exchange gain or loss for 2017?

a.	$15,000 gain
b.	$25,000 loss
c.	$10,000 loss
d.	$25,000 gain