Problem I: (Foreign Currency Transaction) On 10/17/2017, A U.S. company (which has a 12/31 year-end) took delivery from a Canadian firm of inventory costing C$750,000. Payment is due in 90 days. Concurrently the company entered into a forward contract to buy C$750,000 in 90 days at 1 C$ = $1.07. Direct exchange rates for C$ on the respective dates are as follows: Forward Rate Date Spot Rate (Delivery on 1/15/2018) 10/17/2017 1.06 1.07 12/31/2017 1.02 1.04 1/15/2018 1.05 Instructions: Prepare all entries related to this transaction, assuming that the payment was made on 1/15/2018.