On November 15, 2013, a U.S. company issues a purchase order to a Canadian supplier for merchandise costing C$1,000,000. 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 qualifies as a hedge of the firm commitment. Delivery of the merchandise takes place on March 1, 2014, and the forward contract is closed and payment is made to the supplier on April 15, 2014. How is the forward contract reported on the company's December 31, 2013, balance sheet?
a. $60,000 asset
b. $60,000 liability
c. $55,000 liability
d. $55,000 asset

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Spot rate Forward rate for 4/15/14 delivery of Canadian dollars November 15, 2013 December 31, 2013 March 1, 2014 April 15, 2014 $0.905 0.965 0.920 0.940 $0.895 0.950 0.915 0.940