Use the following information to answer Questions 6-8. In 2017, a U.S. company issued a purchase order to a Singapore supplier for merchandise priced at S$1,000,000. At the time of the purchase order, the spot and relevant forward rate for Singapore dollars was $0.71. The company paid $3,000 for call options locking in the cost of S$1,000,000 at $710,000. The investment is a fair value hedge of the firm commitment to buy merchandise. At the end of the year, the spot and relevant forward rates were $0.75/S$ and the call options had a market value of $41,000. In 2018, when the spot rate was $0.77/S$, the options came due and the company sold them for their intrinsic value of $60,000. The company then took delivery of the merchandise and paid the supplier with Singapore dollars purchased on the spot market. 6. At what value is the investment in options reported on the company's 2017 balance sheet? a. $40,000 b. $38,000 c 3,000 d. $41,000 What is the net impact on the company's 2017 income? a. 2,000 loss b. $40,000 loss c. $38,000 gain d. $ 2,000 gain At what value does the company report the inventory acquired in 2018? a. $770,000 b. $710,000 c. $750,000 d. $760,000