Assume that on November 1, 20×1 Zamfir Company enters a forward contract to buy 2,000,000 rubles on February 1, 20×2. How should Zamfir report the forward contract on December 31, 20×1?
A. $8,000 asset
B. $7,800 asset
C. $22,000 asset
D. $7,800 liability
Answer:B
Assume that on November 1, 20×1 Zamfir Company enters a forward contract to buy 2,000,000 rubles on February 1, 20×2. How should Zamfir report the forward contract on December 31, 20×1?
A. $8,000 asset B. $7,800 asset C. $22,000 asset D. $7,800 liability