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Levin company entered into a forward contract to speculate in the foreign currency. It sold 100,000 foreign currency units under a contract dated November 1, 20X8, for delivery on January 31, 20X9:

	11/1/20X8	12/31/20X8
Spot rates	$0.035	$0.037
30-da forward rate	0.034	0.036
90-day forward rate	0.033	0.035

In its income statement for the year ended December 31, 20X8, what amount of loss should Levin report from this forward contract?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92740600

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