Use the information on the U.S. dollar value of the pound sterling to answer the following question(s).

	Spot Rate	Forward Rate for August 16, 2020 Delivery
May 16, 2020	$1.380	$1.375
June 30, 2020	1.390	1.388
August 16, 2020	1.400	1.400

On May 16, 2020, a U.S. company takes delivery of 100,000 in merchandise from a U.K. supplier. The company will pay the supplier 100,000 on August 16. On May 16, the company also enters a forward contract to buy 100,000 on August 16, 2020. On August 16, the company purchases 100,000 using the forward contract, and pays the supplier. The company's accounting year ends June 30, and it sells the merchandise in September 2020. How will the company report the forward contract on its June 30, 2020 balance sheet?

	A.	$1,000 liability
	B.	$1,000 asset
	C.	$1,300 asset
	D.	$1,300 liability