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  3. xyz corp. has a calendar year end. on january 1, 2

XYZ Corp. has a calendar year end. On January 1, 2016, the company borrowed $5,000,000...

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Accounting

XYZ Corp. has a calendar year end. On January 1, 2016, the company borrowed $5,000,000 U.S. dollars from an American Bank. The loan is to be repaid on December 31, 2019 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, 2016 CDN$1.00 = USD $0.87 December 31, 2016 CDN$1.00 = USD $0.855 December 31, 2017 CDN$1.00 = USD $0.835 December 31, 2018 CDN$1.00 = USD $0.82 December 31, 2019 CDN$1.00 = USD $0.89 Average for 2016 CDN$1.00 = USD $0.867 Average for 2017 CDN$1.00 = USD $0.849 15.

What is the amount of interest expense (in Canadian Dollars) recorded for 2017?

What is the amount of the foreign exchange gain or loss recognized on the 2016 Income Statement as a result of revaluing the loan payable?

What is the amount of foreign exchange gain or loss recognized on the 2017 Income Statement as a result of revaluing the loan payable?

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