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:

Cerebellum

A part of the brain at the back of the skull in vertebrates, which is responsible for coordinating and regulating muscular activity.

Amygdala

A region of the brain involved in experiencing emotions, notably fear and pleasure, and in forming emotional memories.

Neuroplasticity

The ability within the brain to constantly change both the structure and function of many cells in response to experience or trauma.

Reflex Arc

The connection of the afferent neurons to the interneurons to the efferent neurons, resulting in a reflex action.