On 11/1/2020, an American firm purchased an inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 2/1/2020. Also on 11/1/2020, the American firm entered into a forward contract to purchase 100,000 Canadian dollars for delivery on 2/1/2020. The exchange rates were as follows: Spot Forward 11/1/2020 1 CD = $0.75 1 CD = $0.76 12/31/2020 1 CD = $0.77 1 CD = $0.79 2/1/2021 1 CD = $0.81 1 CD = $0.81 The American firm's fiscal year-end is 12/31. The changes in the value of the forward contract should be discounted at 12%. Q5. What is the beginning balance (as of 1/1/2021) of accounts payable to the Canadian firm? O 81.000 O 77,000 O 79,000 O 75.000 Question 6 4 pts Q6. What is the balance of inventory purchased from the Canadian firm on the balance sheet as of the settlement date (2/1/2021)? O 75.000 O 79.000 O 77,000 O 81,000 Question 7 4 pts Q7. How much is the total income effect of the foreign transaction (purchase of inventory) with the forward contract? 0 1,000 loss 0 2,000 gain O 5,000 gain O 6,000 loss Q8. What is gain or loss related to the forward contract (value of the contract) recorded in the year 2020? 0 2,970 gain O 2,940 gain O 2,997 gain O 2,000 gain