XYZ Corp. (XYZ) has a calendar year end. On January 1, 2022, the company borrowed $5,000,000 US dollars from an American bank. The loan is to be repaid on December 31, 2025 and requires interest at 5% to be paid every December 31. The loan and applicable interest are both to be repaid in US dollars. XYZ does not hedge to minimize its foreign exchange risk. The following exchange rates are in effect throughout the term of the loan:

January 1, 2022	US $1 = CDN $1.1800
December 31, 2022	US $1 = CDN $1.1920
December 31, 2023	US $1 = CDN $1.1735
December 31, 2024	US $1 = CDN $1.2340
December 31, 2025	US $1 = CDN $1.1650

The average rates in effect for 2022 and 2023 are as follows:

2022:	US $1 = CDN $1.1662
2023:	US $1 = CDN $1.1787

At what amount (in Canadian Dollars) would XYZ record its initial loan liability on January 1, 2022?

Multiple Choice

$5,831,000

$5,893,500

$5,900,000

$5,960,000