REFERENCE: Ref.09_03 Car Corp.(a U.S.-Based Company)sold Parts to a Korean Customer on Customer

REFERENCE: Ref.09_03
Car Corp.(a U.S.-based company) sold parts to a Korean customer on December 16,2008,with payment of 10 million Korean won to be received on January 15,2009.The following exchange rates applied:
SHAPE \* MERGEFORMAT

-Assuming a forward contract was entered into,what would be the net impact on Car Corp.'s 2008 income statement related to this transaction? Assume an annual interest rate of 12% and a fair value hedge.The present value for one month at 12% is .9901.

A) $ 700 (gain) .
B) $ 700 (loss) .
C) $ 300 (gain) .
D) $ 300 (loss) .
E) $ 295.05 (loss) .