On March 1, 20X2, McBride Ltd. issued a purchase order to Tao Heavy Machines (Singapore) Inc. to acquire a drilling machine for $500,000 SGD. On the same day, McBride entered into a forward contract to receive $500,000 SGD on July 31, 20X2. The machine was delivered on June 1, 20X2, and payment was made July 31, 20X2. McBride has an April 30 year-end. The following information has been provided:

DateSpot RateForward rate to July 31, 20X2March 1, 20X2.7686.7810April 30, 20X2.7702.7818June 1, 20X2.7940.7985July 31, 20X2.7995.7995

Assume that the transaction qualifies as a cash-flow hedge. What is the carrying value of the machine? Exchange rates are direct quotes.

a.

$307,440

b.

$317,600

c.

$312,400

d.

$388,250

e.

none of the other choices are correct.