What amount of loss should levin report

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Problem

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?

Reference no: EM131901927

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