Jackson Corp

Multiple Choice

Jackson Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2021, with payment of 20 million Korean won to be received on January 15, 2022. The following exchange rates applied: Assuming a forward contract was entered into on December 16, how would the forward contract be reflected on Jackson's December 31, 2021 balance sheet?

A) Forward contract (asset) .
B) Forward contract (liability) .
C) Foreign currency (asset) .
D) Foreign currency (liability) .
E) Foreign exchange (liability) .