Levin Company Entered into a Forward Contract to Speculate in the Foreign

question 59

Essay

Levin company entered into a forward contract to speculate in the foreign currency.It sold 100,000 foreign currency units under a contract dated November 1,20X8,for delivery on January 31,20X9:
In its income statement for the year ended December 31,20X8,what amount of loss should Levin report from this forward contract?
A.$0
B.$300
C.$200
D.$100

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Definitions:

Global Environments

The dynamic and complex conditions and factors around the world that affect how businesses operate internationally, including economic, political, cultural, and technological aspects.

Special Requirements

Special requirements indicate specific additional criteria or considerations that are not typically part of standard requirements.

Variations

Differences or deviations in a set of items, data points, or processes from a norm or standard.