On September 1st of the current year, Mooney Company writes a contract agreeing to sell to Berry Company 200,000 foreign currency (FC) units at a specific price of $2.14 per FC with delivery in 30 days. The spot rate at the end of 30 days is $2.17
The appropriate discount rate for both Mooney Company and Berry Company is 9%, and Mooney's year end is December 31. On the settlement of the contract, Mooney would record a a. gain of $6,000.
b. gain of $5,955.
c. loss of $6,000.
d. loss of $5,955.
c
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