exchange gains and losses you are the vice president of international infoxchange he 1550037

EXCHANGE GAINS AND LOSSES You are the vice president of International InfoXchange, headquartered inChicago, Illinois. All shareholders of the firmlive in theUnited States. Earlier this month you obtained a loan of 5million Canadian dollars froma bank in Toronto to finance the construction of a new plant in Montreal. At the time the loan was received, the exchange rate was $0 98 to the Canadian dollar. By the end of the month, it has unexpectedly dropped to $0 88. Has your company made a gain or a loss as a result, and by how much?