Hedges of foreign-currency-denominated receivables and payables Spot and forward rates for the euro are: Spot rate Forward rate for April 15, 2019 delivery October 15, 2018 $1.380 $1.360 December 31, 2018 1.290 1.275 April 15, 2019 1.270 1.270 On October 15, 2018, a U.S. company makes inventory purchases of 1,000,000 from suppliers in Germany. The company plans to pay the suppliers on April 15, 2019. On October 15, the company enters into a forward contract for delivery of 1,000,000 on April 15, 2019. The companys accounting year ends December 31. On April 15, 2019, the company closes the forward contract and pays the suppliers. When the U.S. company sells the inventory, at what amount does it report cost of goods sold? Select one: $1,270,000 $1,360,000 $1,290,000 $1,380,000