On November 16, 2019, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay the company 100,000 on March 16. On November 16, the company also enters a forward contract to sell 100,000 on March 16, 2020. On March 16, the company receives 100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. Rates on the dates specified appear below: <\/p>
<\/p>
Spot Rate<\/strong><\/p> Forward Rate for <\/strong><\/p> March 16, 2020 Delivery<\/strong><\/p> November 16, 2019<\/p> $ 1.250<\/p> $ 1.248<\/p> December 31, 2019<\/p> 1.260<\/p> 1.255<\/p> March 16, 2020<\/p> 1.265<\/p> 1.265<\/p> <\/p> <\/p> At what amount will the company report sales revenue on its 2019 income statement?<\/p> A. $126,000 B. $125,500 C. $124,800 D. $125,000<\/p>",
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