Williams, Inc., a U.S. company, has a Japanese yen account receivable resulting from an export sale on March 1 to a customer in Japan. The exporter signed a forward contract on March 1 to sell yen and designated it as a cash flow hedge of a recognized receivable. The spot rate was $.0094, and the forward rate was $.0095. Which of the following did the U.S. exporter report in net income?

A) Discount revenue.

B) Premium revenue.

C) Discount expense.

D) Premium expense.

E) Both discount revenue and a premium expense.

Answer rating: 100% (QA)

B P... View the full answer