On November 15, 2012, Paul Corp, a calendar-year-end company, signed a legally binding contract to purchase equipment from SL Company, a foreign company. The negotiated price is FC 1,000,000. The scheduled delivery date is February 15, 2013. The terms require payment by Paul, upon delivery. The terms also impose a 10% penalty on SL, if the equipment is not delivered by February 15, 2013. To hedge its agreement to pay FC 1,000,000 Paul entered into a foreign currency forward contract on November 15, 2012, to receive FC 1,000,000 on February 15, 2013 at an exchange rate of FC 1.00 = US$ 0.36.

Additional exchange rate information:

Date	Spot Rates	Forward Rates for 2/15/2013
11/15/2012	1 FC = US$ 0.35	1 FC = US$ 0.36
12/31/2012	1 FC = US$ 0.36	1 FC = US$ 0.38
2/15/2013	1 FC = US$ 0.39	1 FC = US$ 0.39 .

As a result of this hedging transaction, at what amount should Paul recognize the equipment on 2/15/2013?

$420,000

$390,000

$360,000

$350,000

$290,500