On December 1, 2017, Crane Corporation committed to purchase a machine from a foreign company, to be delivered and paid April 1, 2018. The purchase price was 800,000 units of foreign currency (FC). To hedge against fluctuations in the exchange rate, Crane entered into a forward contract on December 1 to buy 800,000 units of foreign currency (FC) on April 1, 2018 at the agreed date of $.475 per FC. The following exchange rates were quoted:

		Forward Rate
Date	Spot Rate	(Delivery on 4/1/2018)
12/1/2017	0.483	0.475
12/31/2017	0.470	0.473
4/1/2018	0.481	-----

(Reminder: To avoid confusion as explained in class, only use the following accounts to make journal entries for foreign currency transactions: Inventory, Sales, Cash, Machine, Equipment, A/Payable (FC), A/Receivable (FC), Exchange G/L, Fwd Contract, Contract G/L, Contract G/L-OCI, Firm Commitment, Commitment G/L, Option, Option G/L, Option G/L-OCI.)