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 Exchange Contracts