How much is the foreign exchange gain reported on december

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Question - STAR LAB Company sold merchandise for 30,000 pounds to a customer in London on December 1, 2020. Payment in British pounds was due on March 31, 2021. On the same date, the company entered into a 120-day forward contract to sell 30,000 pounds to Central City Bank. Exchange rates for one pound on different dates are as follows:

 

December 1

December 31

March 31

Spot rates

81.4

82.3

82.0

30-day forward

82.3

82.9

83.2

60-day forward

82.8

82.7

82.6

90-day forward

81.6

82.6

83.4

120-day forward

82.5

82.8

82.5

Required - How much is the foreign exchange gain reported on December 31, 2020 Income Statement?

Reference no: EM133187362

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