ABC Inc Is a Canadian Public Company That Reports Its Results

ABC Inc. is a Canadian public company that reports its results in Canadian dollars. The company purchased an investment in a U.S firm for $1 million U.S. during Year 1 when the Canadian dollar was trading at par. The investment pays no dividends. At the end of Year 1, $1CDN=$1.02 US. This will result in

A) a loss of $19,608 CDN and corresponding decrease to the investment.
B) a gain of $19,608 CDN and corresponding increase to the investment.
C) a gain of $20,000 CDN and corresponding increase to the investment.
D) a loss of $20,000 CDN and corresponding decrease to the investment.
E) no entry being made at all, since the investment is not necessarily impaired.