Note: This Is a Kaplan CPA Review Question

Multiple Choice

Note: This is a Kaplan CPA Review Question
On September 1, 20X1, Brady Corp. entered into a foreign exchange contract for speculative purposes by purchasing 50,000 deutsche marks for delivery in 60 days. The rates to exchange $1 for 1 deutsche mark follow:
In its September 30, 20X1 income statement, what amount should Brady report as foreign exchange loss?

A) $1,000
B) $2,500
C) $1,500
D) $500