Constellation Brands, a U.S. company, purchases merchandise from a German supplier on a regular basis. On November 1, 2023, Constellation purchased 100,000 for delivery on February 1, 2024, in anticipation of an expected purchase of merchandise for 100,000 at the beginning of February. The forward contract was a qualified hedge of a forecasted transaction. Constellation took delivery of the merchandise, settled the forward contract, and paid the German supplier 100,000 on February 1, 2024. The merchandise was subsequently sold in the U.S. on March 15, 2024, for $150,000 in cash. Constellation has a December 31 year-end. Relevant exchange rates ($/) are as follows:

\begin{tabular}{|l|c|c|} \hline & \multicolumn{2}{|c|}{ Forward rate for delivery } \\ \hline Fovember 1,2023 & $1.20 & $1.18 \\ \hline February 1, 2024 & 1.24 & -- \\ \hline \end{tabular} Required \begin{tabular}{|l|c|c|} \hline & \multicolumn{2}{|c|}{ Forward rate for delivery } \\ \hline Fovember 1,2023 & $1.20 & $1.18 \\ \hline February 1, 2024 & 1.24 & -- \\ \hline \end{tabular} Required