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Amazing Corporation, a U.S. enterprise, sold product to a customer in Wales on October 1, 201 for 200,000 with payment required on April 1, 202.
Amazing Corporation, a U.S. enterprise, sold product to a customer in Wales on October 1, 201 for 200,000 with payment required on April 1, 202. Relevant exchange rates are: The discount factor corresponding to the company's incremental borrowing rate for 3 months is 0.94 . Assume that Amazing Corporation enters a forward contract on October 1 , 201 to sell 200,000 six months hence, on April 1,20x2. How should Amazing Corporation report the forward contract on its December 31,201 financial statements? Liability $1,880 Asset $1,880 Asset $3,880 Liability $3,880
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