forward contract function currency

X is a calendar year-end corporation with the dollar as its functional currency. On 10/1/2014, X enters into a forward contract to buy 100,000 Euros for delivery on 3/1/2015. By 12/31/2014, the forward contract has appreciated by $1,000. Assuming there are regulated futures contracts traded in Euros, what is the amount and character of taxable income/loss X recognized on 12/31/2014? Assume X does not make any special elections.

 

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