Dahl entered into the third forward contract for speculation. At December 31, 20X5, what amount of foreign currency transaction gain should Dahl include in income from this forward contract?

a. $0

b. $3,000

c. $5,000

d. $10,000 On December 12, 20X5, Dahl Company entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows:

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Forward Rate Spot Rate for March 12, 20X6 $0.88 December 12, 20X5 December 31, 20X5 0.98 $0.90 0.93