Car Corp (A U

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: 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) .