On December 1, 2014, SMC entered into a transaction to import raw materials from a foreign country. The account is to be settled March 1 with the payment of 50,000 euros. The spot rate for euros on December 1 was $1.4/euro and on March 1 was $1.44/euro. If SMC does not hedge the payable, raw materials will be recorded on the books on March 1, 2015 at what amount?

a. $70,000 b. none of these c. 72,000 d. 50,00 euros