Scenario 10-1 On 6/1/X2, an American Firm Purchased a Inventory Costing 100,000

Multiple Choice

Scenario 10-1
On 6/1/X2, an American firm purchased a inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 8/1/X2. Also on 6/1/X2, the American firm entered into a forward contract to purchase 100,000 Canadian dollars for delivery on 8/1/X2. The exchange rates were as follows:
The American firms fiscal year end is 6/30/X2. The changes in the value of the forward contract should be discounted at 8%.
-Refer to Scenario 10-1. What is the value of the Forward Contract Receivable-FC on 6/1/X2?

A) $73,000
B) $74,000
C) $68,000
D) $70,000