On January 1^st,2014 ABC Inc.had invoiced a client in New York for $10,000 US for services rendered that day.ABC did not hedge this receivable.The receivable is due in 60 days.On January 1^st,2014,the spot rate was $1US = $1.02CDN.On January 31^st,2014,the spot rate was $1US = $1.05CDN.What is the effect of the above information on ABC's January financial statements? A) A $300 foreign exchange gain. B) A $300 foreign exchange loss. C) A $300 credit to OCI. D) A $300 debit to OCI.

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The increase in the spot rate from $1.02CDN to $1.05CDN results in a foreign exchange gain for ABC Inc. The receivable in US dollars is now worth more in Canadian dollars, leading to a $300 gain (calculated as $10,000 * ($1.05 - $1.02)).

On January 1st,2014 ABC Inc

On January 1^st,2014 ABC Inc