XYZ Corp. has a calendar year end. On January 1, 2019, the company borrowed $5,000,000 U.S. dollars from an American Bank. The loan is to be repaid on December 31, 2022 and requires interest at 5% to be paid every December 31. The loan and applicable interest are both to be repaid in U.S. dollars. XYZ does not hedge to minimize its foreign exchange risk. The following exchange rates were in effect throughout the term of the loan: January 1, 2019 US $1 = CDN $1.1500 December 31, 2019 US $1 = CDN $1.1490 December 31, 2020 US $1 = CDN $1.1485 December 31, 2021 US $1 = CDN $1.1483 December 31, 2022 US $1 = CDN $1.1487 The average rates in effect for 2019 and 2020 were as follows: 2019: US $1 = CDN $1.1493 2020: US $1 = CDN $1.1487 By what amount (in Canadian Dollars) would XYZ have to adjust its Loan Liability on December 31, 2020 as a result of the year's foreign exchange rate fluctuations? Select one: A. Nil B. $2,500 increase C. $3,500 decrease D. $2,500 decrease