On April 1, 2014, Manatee Company Entered into Two Forward

question 23

Multiple Choice

On April 1, 2014, 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.

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Definitions:

Nonsense Syllables

Meaningless sets of two or more letters used in psychological experiments to study memory, learning processes, and the forgetting curve.

Prior Exposure

The phenomenon by which previous experience or contact with a stimulus influences one's response or reaction to it in the future.

Familiar Test Items

Test items that are recognizable by individuals, often because they have encountered similar items before or the items are related to known concepts.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimuli have ended.