Monument Company (a U.S.-based company) ordered a machine costing 250,000 from a foreign supplier on January 15, when the spot rate was $1.28 per . A one-month forward contract was signed on that date to purchase 250,000 at a forward rate of $1.30. The forward contract is properly designated as a fair value hedge of the 250,000 firm commitment. On February 15, when the company receives the machine, the spot rate is $1.29. At what amount should Monument Company capitalize the machine on its books?

Multiple Choice

• $320,000

• $325,000

• $322,500

• $71,500