Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 54

Lawrence Company ordered parts costing FC100,000 from a foreign supplier on May 12 when the spot rate was $0.20 per FC.A one-month forward contract was signed on that date to purchase FC100,000 at a forward rate of $0.21.The forward contract is properly designated as 4 fair value hedge of the FC100,000 firm commitment.On June 12, when the company receives the parts, the spot rate is $0.23.At what amount should Lawrence Company carry the parts inventory on its books a.$20,000.
B)$21,000.
C)$22,000.
D)$23,000.