On December 1, 2020, Venice Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,350,000 pesos on March 1, 2021. The following U.S. dollar per peso exchange rates apply: Date December 1, 2020 December 31, 2020 March 1, 2021 Spot Rate $ 0.006 0.008 0.012 Forward Rate (to March 1, 2021) $0.009 0.011 N/A Ignoring present values, Which of the following correctly describes the manner in which Venice Company will report the forward contract on Its December 31, 2020, balance sheet? Multiple Choice As an asset in the amount of $2,700 As a liability in the amount of $2,700