On 6/1/17, an American firm purchased an inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 8/1/17. Also on 6/1/17, the American firm entered into a forward contract to purchase 100,000 Canadian dollars for delivery on 8/1/17. The exchange rates were as follows:

	Spot	Forward
6/1/17	1 CD = $0.73	1 CD = $0.74
6/30/17	1 CD = $0.75	1 CD = $0.76
8/1/17	1 CD = $0.78	1 CD = $0.78

The American firm’s fiscal year end is 6/30/17. The changes in the value of the forward contract should be discounted at 8%. The transaction qualifies as for accounting as a cash flow hedge. What is the total amount that will be recognized in other comprehensive income in the year ended 6/30/17?

	a.	$1,987 debit
	b.	$2,320 credit
	c.	$320 credit
	d.	$2,000 debit