Taste Bits Incorporated purchased chocolates from Switzerland for 200,000 Swiss francs (SFr) on December 1, 20X8. Payment is due on January 30, 20X9. On December 1, 20X8, the company also entered into a 60-day forward contract to purchase 200,000 Swiss francs. The forward contract is not designated as a hedge. The rates were as follows: December 1, 20X8 December 31, 20X8 January 30, 20X9 Spot Rate $ 0.89 $ 0.91 $ 0.92 Forward Rate $0.90 (60 days) $0.93 (30 days) Based on the preceding information, the entries on December 31, 20X8, related to the forward contract include a:

Taste Bits Incorporated purchased chocolates from Switzerland for 200,000 Swiss francs (SFr) on December 1, 208. Payment is due on January 30,209. On December 1,208, the company also entered into a 60 -day forward contract to purchase 200,000 Swiss francs. The forward contract is not designated as a hedge. The rates were as follows: sed on the preceding information, the entries on December 31,208, related to the forward contract include a