Hedges of foreign-currency-denominated forecasted transactions Spot and forward rates for the euro are: December 15, 2018 December 31, 2018 January 15, 2019 Spot rate Forward rate for January 15, 2019 delivery $1.290 $1.300 1.320 1.325 1.330 1.330 On December 15, 2018, a U.S. company forecasts that it will purchase merchandise costing 1,000,000 from suppliers in Germany in mid-January. On December 15, the company enters into a forward contract for delivery of 1,000,000 on January 15, 2019. The forward contract is a qualified cash flow hedge of the forecasted purchase of merchandise. The company's accounting year ends December 31. On January 15, 2019, the company takes delivery of the merchandise, closes the forward contract, and pays the suppliers. When the inventory is sold, at what amount will the U.S. company report cost of goods sold? Select one: o $1,300,000 $1,330,000 $1,325,000 $1,290,000