Clown Co. ordered parts costing 200,000 Foreign Currency Units (FCU) from a foreign supplier on October 1 when the spot rate was

$0.27

per FCU. A one-month forward contract was signed on that date to purchase 200,000 FCU at a forward rate of

$0.27

per FCU. On October 31 , the forward rate was

$0.25

. On November 15 th, when the parts were received and payment was made, the spot rate was

$0.24

per FCU. At what amount should firm commitment be reported at November 15 th?\

$6,000

asset\

$4,000

liability\

$4,000

asset\

$200,000

\

$6,000

liability

Clown Co. ordered parts costing 200,000 Foreign Currency Units (FCU) from a foreign supplier on October 1 when the spot rate was $0.27 per FCU. A one-month forward contract was signed on that date to purchase 200,000 FCU at a forward rate of $0.27 per FCU. On October 31 , the forward rate was $0.25. On November 15 th, when the parts were received and payment was made, the spot rate was $0.24 per FCU. At what amount should firm commitment be reported at November 15th? $6,000 asset $4,000 liability $4,000 asset $200,000 $6,000 liability