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Lowell Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2018, with...

Lowell Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2018, with payment of 10 million Korean won to be received on January 15, 2019. The following exchange rates applied: Date Spot Rate Forward Rate to Jan.15 December 16, 2018 $ 0.00092 $ 0.00098 December 31, 2018 0.00090 0.00093 January 15, 2019 0.00095 0.00095 Assuming a forward contract was entered into on December 16 and Lowell designated this hedging as fair value hedge, what would be the net impact on Lowell Corp.'s 2018 income statement related to this transaction (excluding the effect of sales)? Assume an annual interest rate of 12%. The present value for 15 days (or half a month) at 12% is .9950. Multiple Choice $298 (gain). $700 (gain). $498 (gain). $300 (loss). $698 (gain).

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