Car Corp (A U Assuming a Forward Contract Was Entered Into, How Would the Customer

Multiple Choice

Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2013, with payment of 10 million Korean won to be received on January 15, 2014. The following exchange rates applied: $\begin{array}{lrr}&&\text { Forward }\\&\text { Spot}&\text { Rate }\\\text { Date }&\text { Rate}&\text { to Jan. } 15\\\hline\text { December 16, 2013 } & \$ .00092 & \text { \$. } 00098 \\\text { December 31, 2013 } & .00090 & .00093 \\\text { January 15, 2014 } & .00095 & .00095\end{array}$ Assuming a forward contract was entered into, how would the forward contract be reflected on Car's December 31, 2013 balance sheet?

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