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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Levin Company Entered into a Forward Contract to Speculate in the Foreign