On January 1, 2020, Brands Inc

Subject:AccountingPrice:2.84 Bought6

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On January 1, 2020, Brands Inc. entered into a forward contract to purchase $200,000 US for $256,000 CAD on June 30, 2020. On March 31, 2020, the exchange rate is 1.25 CAD : $1 USD. 

Assume no entries were made and you have been asked to make any required journal entry then for Brands Inc., regarding this forward contract as at March 31, 2020. You would provide one of the following:

??a)No entry required.

b) Derivative- forward contract asset DR....6,000

Gain    CR....6,000

c) Loss         DR....6,000

Derivative-forward contract liability CR....6,000

d) Loss       DR....7,680

Derivative-forward contract liability CR....7,680

e) Derivative-forward contract asset    DR....5,000

Gain      CR....5,000