Question: Dahl entered into the third forward contract for speculation. At December 31, 20X5, what amount of foreign currency transaction gain should Dahl include in income

Dahl entered into the third forward contract for speculation. At December 31, 20X5, what amount of foreign currency transaction gain should Dahl include in income from this forward contract?

a. $0

b. $3,000

c. $5,000

d. $10,000 On December 12, 20X5, Dahl Company entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows:

Forward Rate Spot Rate for March 12, 20X6 $0.88 December 12, 20X5

Forward Rate Spot Rate for March 12, 20X6 $0.88 December 12, 20X5 December 31, 20X5 0.98 $0.90 0.93

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