Belsen purchased inventory on December 1, 2015. Payment of 100,000 stickles was to be made in sixty days. Also on December 1, Belsen signed a contract to purchase 100,000 in sixty days. The spot rate was 1 = .35714, and the 60-day forward rate was 1 = $.38462. On December 31, the spot rate was 1 = .34483 and the 30-day forward rate was 1 = .38168. Assume an annual interest rate of 8% and a fair value hedge. The present value for one month at 8% is .9901. In the journal entry to record the establishment of a forward exchange contract, at what amount should the Forward Contract account be recorded on December 1?

		$0, since there is no cost there is no value for the contract at this date.
		$71,428.
		$588.
		$582.
		None of the above.