St. Philip Company ordered parts costing 150,000 from a foreign supplier on January 15 when the spot rate was $0.19 per . A one-month forward contract was signed on that date to purchase 150,000 at a forward rate of $0.21. The forward contract is properly designated as a fair value hedge of the 150,000 firm commitment. On February 15, when the company receives the parts, the spot rate is $0.20. At what amount should St. Philip Company carry the parts inventory on its books?

Multiple Choice

• $28,500

• $30,000

• $29,000

• $31,500