The functional currency of company A is RMB. On December 12, 20x9, company A acquired 500,000 of ord

The functional currency of company A is RMB. On December 12, 20x9, company A acquired 500,000 of ordinary shares of company B operated in the USA for $7,500,000 as trading securities. The spot rate on Dec. 12, 20X9 is $1 to RMB6.8. On Dec. 31, 20X9, the market price of company B’s share is $18 and the exchange rate is $1 to RMB 6.6. What is the effect on profit or loss for December 20X9?

A.RMB1,500,000

B.RMB8,400,000

C.RMB1,800,000

D.RMB 0

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