QUESTION 5 On August 1, a US company enters into a forward contract, in which it agrees to buy 1,000,000 euros from a bank at a rate of $1.45 on December 1. Changes in the value of the forward contract will be reported on the income statement in which one of the following situations? a. The US company uses the forward contract to hedge a planned purchase of commodities from an Italian supplier b. The US company uses the forward contract to hedge a forecasted purchase of merchandise from a French supplier The US company uses the forward contract to bedge an expected acquisition of commodities from a Belgian company d. The US company uses the forward contract to hedge a loan denominated in euros