On November 1, 20x1, Piomelo Inc., which is operating in the Philippines, purchased an investment property in the USA at a price of $10,000, payable on January 31, 20x2. In order to hedge this exposed foreign currency-denominated accounts payable, Near Piomelo entered into a forward contract with BDO for the purchase of $10,000 to be collected on January 31, 20x2. Near AFAR Inc. accounts for its investment property using the fair value model. On December 31, 20x1, the fair market value of the investment property is $12,000. The bank provides the following direct exchange rates: 11/1/20x1 12/31/20x1 1/31/20x2 Buying spot 40 37 38 Selling spot 45 50 47 Buying forward-30 days 38 32 35 Selling forward-30 days 34 41 36 Buying forward-60 days 43 35 46 Selling forward-60 days 40 41 43 Buying forward-90 days 42 40 38 Selling forward-90 days 43 40 36