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[The following information applies to the questions displayed below.] Select the correct answer for each of the following questions. Note: Items 3 through 5 are based on the following: On December 12, 20X5, Dahl Company entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows:

	Spot Rate				Forward Rate for March 12, 20X6
December 12, 20X5		$	0.88			$	0.90
December 31, 20X5			0.98				0.93

1. The following information applies to Denton Inc.s sale of 10,000 foreign currency units under a forward contract dated November 1, 20X5, for delivery on January 31, 20X6:

	11/1/X5				12/31/X5
Spot rates		$	0.80			$	0.83
30-day forward rate			0.79				0.82
90-day forward rate			0.78				0.81

Denton entered into the forward contract to speculate in the foreign currency. In its income statement for the year ended December 31, 20X5, what amount of loss should Denton report from this forward contract?

multiple choice

$200

$400

$0

$300

Required information [The following information applies to the questions displayed below.] Select the correct answer for each of the following questions. Note: Items 3 through 5 are based on the following: On December 12, 20X5, Dahl Company entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows: 1. The following information applies to Denton Inc.'s sale of 10,000 foreign currency units under a forward contract dated November 20X5, for delivery on January 31, 20X6: Denton entered into the forward contract to speculate in the foreign currency. In its income statement for the year ended December 31, 20X5, what amount of loss should Denton report from this forward contract? $200 $400 $0