On April 1, 2017, Manatee Company Entered into Two Forward

question 24

Multiple Choice

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.

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Definitions:

Achievement Motivation

The drive to pursue and meet (often challenging) goals, based on the desire to achieve success and excel.

Intermediate Difficulty

A level of challenge that is neither too hard nor too easy, often considered optimal for learning and engagement.

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment, often prioritizing short-term rewards over long-term goals.

Affective Forecasting

The process of predicting how one will feel in the future, often with a focus on emotional reactions to specific events.