Use the Following Information to Answer Bellow Questions

Multiple Choice

Use the following information to answer bellow Questions
A U.S. company anticipates that it will purchase merchandise for €100,000 at the end of August and pay for it at the time the merchandise is delivered. On May 1, when the spot rate is $1.20 and the forward rate for delivery on August 30 is $1.21, the company enters a forward contract to buy €100,000 on August 30. The forward contract qualifies as a cash flow hedge of the forecasted purchase. The company purchases the merchandise on August 30, when the spot rate is $1.232, and closes the forward contract and pays the supplier €100,000. The company sells the merchandise in October. The company has a December 31 year-end.
-On August 30, the company records the merchandise at what amount?

A) $123,200
B) $121,000
C) $125,400
D) $120,000