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Question: Use the following information for the next two questions.On December 12, 2012, Slow Corp. entered into twoforward exchange contracts, each to purchase 100,000euros in ninety days. The relevant exchange rates are asfollows:DateSpot RatesForward Rates for March 12, 201311/30/12P87P8912/12/12889012/31/12929353.Slow entered into a second forward contract to hedgea commitment to purchase equipment being manufactured to Slow’s specifications. The expected delivery date is March 2013 at which time settlement isdue to the manufacturer. The hedge qualifies as a fair value hedge. At December 31, 2012, what amount of foreign currency transaction gain from this forward contract should Slow include in net income? Slow entered into a third forward contract forspeculation. At December 31, 2012, what amount offoreign currency transaction gain from this forwardcontract should Slow include in net income?

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