On 4/1/17, a U.S. Company commits to sell a piece of equipment to a French customer. At that time, the U.S. company enters into a forward contract to sell foreign currency on 8/1/17 (120 days). Delivery will take place 7/1/17 with payment due on 8/1/17. The fiscal year end for the company is 6/30/17. The sales price of the equipment is 200,000 Euros. Various exchange rates are as follows:

	Spot	Forward
4/1/17	1FC = $0.60	1FC = $0.58
6/30/17 and 7/1/17	1FC = $0.58	1FC = $0.56
8/1/17	1FC = $0.55	1FC = $0.55

Discount rate is 12%.

What is the amount in the Firm Commitment account on 6/30/17?

a.	4,000 debit
b.	8,000 debit
c.	4,000 credit
d.	10,000 credit