On December 1, 2023, Venice Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,000,000 pesos on March 1, 2024. The following U.S. dollar per peso exchange rates apply:

Ignoring present values, determine whether Venice Company should report the forward contract as an asset or as a liability on its December 31, 2023, balance sheet, and at what amount.

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Date December 1, 2023 December 31, 2023 March 1, 2024 Spot Rate $0.088 0.095 0.105 Forward Rate (to March 1, 2024) $0.094 0.098 N/A