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

question 2

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 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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