Nelson Co Ordered Parts Costing §120,000 from a Foreign Supplier on on May

Multiple Choice

Nelson Co. ordered parts costing §120,000 from a foreign supplier on May 12 when the spot rate was $0.31 per stickle. A one-month forward contract was signed on that date to purchase §120,000 at a forward rate of $0.32 per stickle. On June 12, when the parts were received and payment was made, the spot rate was $0.36 per stickle. At what amount should inventory be reported?

A) $0.
B) $43,200.
C) $38,400.
D) $37,200.
E) $6,000.