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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


Definitions:

Monocot Leaves

Leaves characterized by parallel venation, usually found in monocotyledonous plants.

Bulb

A rounded underground storage organ present in some plants, consisting of a short stem surrounded by fleshy scale leaves or leaf bases, functioning as a food reserve.

Underground Stem

Subterranean plant parts that function in storage of nutrients, vegetative reproduction, and survival from environmental conditions.

Modified Leaves

Leaves that have evolved to serve functions other than photosynthesis, such as protection or storage.

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