On December 1, 2020, Venice Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,040,000 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 $ 0.026 0.028 0.032 Forward Rate (to March 1, 2021) $ 0.029 0.031 NA 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? Oa. As an asset in the amount of $1,040. Ob. As a liability in the amount of $1,040. Oc. As an asset in the amount of $2,080. Od. As a liability in the amount of $2,080. Oe. Nothing from the information given will be reported in the balance sheet