On December 1, 2011 Barnum Company (A US based company) entered into a three-month forward contract to purchase 1,000,000 ringgits on March 1, 2012. The following U.S. Dollar per ringgit exchange rates apply. December 1, 2011, spot rate = .044, forward rate (to march 1, 2012) = .0042 December 31, 2011, spot rate = .0040, forward rate (to march 1, 2012) = .0037 March 1, 2012, spot rate = .028, forward rate to march 1, 2012 = n/a Barnum's incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is .9803. Which of the following correctly describes the manner in which Barnum Company will report the forward contract on its December 31, 2011 Balance sheet? a) As an asset in the amount of $1960.60 b) as an asset in the amount of $3,921.20 c) As a liability in the amount of $6,862.10 d) As a liability in the amount of $4,901.50