Question
Levin company entered into a forward contract to speculate in the foreign currency. It sold 100,000 foreign currency units under a contract dated November 1,
| 11/1/2008 | 12/31/2008 | |
| Spot rates | $0.035 | $0.037 |
| 30-day forward rate | $0.034 | $0.036 |
| 90-day forward rate | $0.033 | $0.035 |
In its income statement for the year ended December 31, 2008, what amount of loss should Levin report from this forward contract?
| A. | $0 | |
| B. | $300 | |
| C. | $200 | |
| D. | $100 |
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Introduction to Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan
5th Canadian edition
77429494, 1259105709, 1260480798, 978-1259105708
