Use the following information on the U.S. dollar value of the New Zealand dollar to answer the question.
Forward Rate for
Spot Rate June 30 Delivery
March 28
10.670
$0.675
May 2
0.680
0.682
June 28
0.685
0.680
On March 28, a U.S. company issues a purchase order to buy merchandise for NZ$\100,000. The company will pay the supplier on June 28. On March 28, the company enters a forward contract to
purchase NZ$\100,000 on June 28. The company takes delivery of the merchandise on May 2. On June 28, the company acquires NZ$\100,000 using the forward contract and pays the supplier. The
company sells the merchandise later in the year. The company's accounting year ends December 31.
When the company takes delivery of the merchandise on May 2, accounts payable is credited in the amount of:
Select one:
a. $67,000
b. $67,500
c. $68,200
d. $68,000