Monument Company (a U.S.-based company) ordered a machine costing €100,000 from a foreign supplier on January 15, when the spot rate was $1.20 per €. A one-month forward contract was signed on that date to purchase €100,000 at a forward rate of $1.23. The forward contract is properly designated as a fair value hedge of the €100,000 firm commitment. On February 15, when the company receives the machine, the spot rate is $1.22. At what amount should Monument Company capitalize the machine on its books?

a. $120,000

b. $121,000

c. $122,000

d. $123,000