Assume that Amazing Corporation enters a forward contract on October 1, 20×1 to sell £100,000 six months hence, on April 1, 20×2. How should Amazing Corporation report the forward contract on its December 31, 20×1 financial statements?
A. Asset $1,950
B. Liability $1,950
C. Asset $1,000
D. Asset $950
Answer:D
Assume that Amazing Corporation enters a forward contract on October 1, 20×1 to sell £100,000 six months hence, on April 1, 20×2. How should Amazing Corporation report the forward contract on its December 31, 20×1 financial statements?
A. Asset $1,950 B. Liability $1,950 C. Asset $1,000 D. Asset $950