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

question 27

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:

ECG

A medical examination analyzing the heart's electric functionality to detect assorted cardiac disorders.

Sedentary

Pertaining to sitting; inactivity.

Inactivity

A state of being not engaged in physical movement or exercise, often leading to decreased physical fitness.

Intermittent

Occurring at irregular intervals; not continuous or steady.