CIUIL BAIT a. $14,000. b. $7,000. c. $10,500. Gain d. $0. 12. On September 1, 2014, Mudd Plating Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days. The relevant exchange rates are as follows: Forward Rate Spot rate For Dec. 1. 2014 September 1, 2014 1.46 1.47 September 30, 2014 (year-end) 1.50 1.48 The first forward contract was to hedge a purchase of inventory on September 1, payable on December 1. On September 30, what amount of foreign currency transaction loss should Mudd Plating report in income? Assume that the gain or loss from the hedged item and the offsetting loss or gain from the hedging instrument are reported under one line item on the income statement. a. $0. b. $2,500. c. $5,000. d. $10,000