On April 1, 2017, Manatee Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are as follows: The first forward contract was to hedge a purchase of inventory on April 1, payable on December 1. On April 30, what amount of foreign currency transaction loss should Manatee report in income?
A) $0.
B) $3,000.
C) $9,000.
D) $12,000.

Question

On April 1, 2017, Manatee Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are as follows:  The first forward contract was to hedge a purchase of inventory on April 1, payable on December 1. On April 30, what amount of foreign currency transaction loss should Manatee report in income?
A) $0. 
B) $3,000. 
C) $9,000. 
D) $12,000.

Quizplus · Accepted Answer

The Answer of On April 1, 2017, Manatee Company entered into two forward exchange contracts to purchase 300,000 euros each in 90 days. The relevant exchange rates are as follows:  The first forward contract was to hedge a purchase of inventory on April 1, payable on December 1. On April 30, what amount of foreign currency transaction loss should Manatee report in income?
A) $0. 
B) $3,000. 
C) $9,000. 
D) $12,000.

On April 1, 2017, Manatee Company Entered into Two Forward