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 second forward contract was strictly for speculation. On April 30, 2017, what amount of foreign currency transaction gain 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 second forward contract was strictly for speculation. On April 30, 2017, what amount of foreign currency transaction gain 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 second forward contract was strictly for speculation. On April 30, 2017, what amount of foreign currency transaction gain 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