Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 16,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 16,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: