Larson, Inc What Will Be the Recorded Amount of the Forward Contract

Multiple Choice

Larson, Inc.sold merchandise for 600,000 FC to a foreign vendor on November 30, 2020.Payment in foreign currency is due January 31, 2021.On the same day, Larson signed an agreement with a foreign exchange broker to sell 600,000 FC on January 31, 2021.Exchange rates to purchase 1 FC are as follows: ?

$$\begin{array} { l r r r } & \text { Nov. } 30,2020 & \text { Dec. } 31,2020 & \text { Jan. } 31,2021 \\\text { Spot } & \$ 1.49 & \$ 1.46 & \$ 1.43 \\30 \text { day } & \$ 1.48 & \$ 1.43 & \$ 1.44 \\60 \text { day } & \$ 1.47 & \$ 1.40 & \$ 1.42\end{array}$$ What will be the recorded amount of the Forward Contract on November 30, 2020?

A) $894,000
B) $888,000
C) $882,000
D) $0