The reported reclassification adjustment for forward contract on its 2010 statement of comprehensive income should be

Question 14 options:

	($1,921)
	$1,921
	($2,921) show work
	$2,921

On November 10, 2009, King Co. sold inventory to a customer in a foreign country. King agreed to accept local currency uits CU) in full payment for this inventory. Payment was to be made on Feb 1, 2010. On December 1,2009, King entered into a forward contract wherein the total payment to be received would be delivered to a currency broker in two months Additional information is as follows Total payment in local currency units (LCU) for the inventory 200,000 Date Nov. 10, 2009 Dec. 1.2009 Spot Rate Spot Rate 2-Month Forward Rate Spot Rate 1-Month Forward Rate Spot Rate 0.26 S0.24 0.22 S0.20 S0.18 0.16 Dec. 31, 2009 Feb. 1,2010 The present value factor for one month based on the company's borrowing rate is Assume this hedge is designated as a cash low hedge, what items relating to this transaction should the company report on its 2009 and 2010 financial statements? 0.9901 On November 10, 2009, King Co. sold inventory to a customer in a foreign country. King agreed to accept local currency uits CU) in full payment for this inventory. Payment was to be made on Feb 1, 2010. On December 1,2009, King entered into a forward contract wherein the total payment to be received would be delivered to a currency broker in two months Additional information is as follows Total payment in local currency units (LCU) for the inventory 200,000 Date Nov. 10, 2009 Dec. 1.2009 Spot Rate Spot Rate 2-Month Forward Rate Spot Rate 1-Month Forward Rate Spot Rate 0.26 S0.24 0.22 S0.20 S0.18 0.16 Dec. 31, 2009 Feb. 1,2010 The present value factor for one month based on the company's borrowing rate is Assume this hedge is designated as a cash low hedge, what items relating to this transaction should the company report on its 2009 and 2010 financial statements? 0.9901