on november 15 2013 a u s company takes delivery of merchandise costing c 1 000 000 4372410

On November 15, 2013, a U.S. company takes delivery of merchandise costing C$1,000,000 from a Canadian supplier and records an account payable. On the same date, the company enters a forward contract locking in the U.S. dollar purchase price of C$1,000,000, for delivery on April 15, 2014. The forward contract is closed and payment is made to the supplier on April 15, 2014. The company’s accounting year ends on December 31. Assuming the company still holds the merchandise at December 31, 2013, at what amount is the merchandise reported? a. $895,000 b. $905,000 c. $950,000 d. $965,000
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On November 15 2013 a U S company takes delivery of

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