On Jun 1, 20x1, David Company (a U.S.-based company) entered into a three-month forward contract to purchase 2,000,000 RMBs on Sept 1, 20X1. The following U.S. dollar per RMB exchange rates apply: Date Spot rate Forward Rate (to Sept 1, 20X1) $0.052 $0.055 $0.056 $0.057 $0.059 N/A Jun 1, 20X1 Jun 30, 20X1 Sept 1, 20X1 The present value factor of David's incremental borrowing rate for two months at an annual interest rate of 6 percent (.5 percent per month) is 0.9148. a) Which of the following correctly describes the manner in which David Company will report the forward contract on its Jun 30, 20X1, balance sheet? b) If David Company purchased inventory on Jun 1, 20X1 and incurred a note payable without any interest requirement in 2,000,000 RMB due in three months., which of the following correctly describes the manner in which David Company will report the note payable on its Jun 30, 20X1, balance sheet