A company is doing business with a German entity and, as a result, has entered into a forward exchange contract on December 18, year 2, under which it will purchase 300,000 Euros on February 18, year 3. Relevant exchange rates are as follows: Spot rate Forward rate for 2/18, year 3 November 18, year 2 $1.27 $1.30 December 18, year 2 1.32 1.25 December 31, year 2 1.35 1.31 February 18, year 3 1.37 The company purchased printing supplies from a German supplier on November 18, year 2, on 90 day terms, and is required to pay 300,000 Euros on February 18, year 3. When the exchange rate increased on December 18, the company decided to enter into the forward exchange contract, which was not designated as a hedge. What amount of foreign currency gain or loss should be recognized in income on December 31, year 2

Answers

Answer 1

Answer:

$18,000 gain

Explanation:

Calculation for the amount of foreign currency gain or loss that should be recognized in income on December 31, year 2

Since Forward rate was given as:

December 18, year 2 $1.25

December 31, year 2 $1.31

Which means we have to Deduct the forward rate of December 18, year 2 which is $1.25 from the forward rate of December 31, year 2 which is $1.31 and then multiply it by the amount in which forward rate was purchased which is 300,000 Euro which will in turn give us the amount of foreign currency gain that should be recognized in income on December 31, year 2

Now let calculate

Forward rate December 18, year 2 $1.25

Less Forward rate December 31, year 2 $1.31

=$0.06 gain per Euro

Now let calculate for the amount of foreign currency gain that should be recognized in income on December 31, year 2

Hence,

Forward rate purchased amount 300,000 Euro ×$0.06 gain per Euro

=$18,000 gain

Therefore the amount of foreign currency gain that should be recognized in income on December 31, year 2 will be $18,000 gain.


Related Questions

What were the main factors in both the North and South for the abandonment of Reconstruction?

Answers

Social effects were bringing families back together, the Emancipation act, and churches and schools being available to former slaves. What were the main factors, in both the North and South, for the abandonment of Reconstruction?- Land, jobs, and establishing the Bureau were the main factors for both.

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Answers

The answer to your question would be : Hello ! :)

After a long thought process regarding this question, I concluded that this would be the only acceptable response.

When irobot introduced new robot models that would clean gutters and mop​ floors, this innovation represented which type of market growth​ strategy?
a. Diversification
b. Product development
c. Market segmentation
d. Market development
e. Market penetration?

Answers

Answer:

b. Product development

Explanation:

When irobot introduced new robot models that would clean gutters and mop​ floors, this innovation represented the product development type of market growth​ strategy.

Property rights protect businesses by:
A. setting a minimum price on all goods in an industry.
B. ensuring that the government cannot regulate their actions.
C. providing them with emergency loans from the government.
D. preventing competitors from copying their products.

Answers

it’s D

because property rights are like copyrights that protect a business’ products, so it the work cannot be replicated

Preventing competitors from copying their products is the use of Property rights to protect businesses. In business, there is high number of chance to copy the designs and pattern of the goods and services.

Why is it important to protect property rights?

The primary goal of property rights, as well as their primary achievement, is to minimize destructive rivalry for control of economic resources. Property rights that are well-defined and well-protected replace violent rivalry with harmonious competition.

Thus, option D is correct.

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According to the systems perspective, transformational processes are responsible for turning:_____.

Answers

Answer:

inputs into outputs

Explanation:

According to the systems perspective, transformational processes are responsible for turning inputs into outputs.

What is perspective?

The term perspective refers to the art or technique of painting or drawing a scene so that objects in it seem to have depth and distance. A particular way of considering something or to think about a situation or problem in a wise and reasonable way. Perspective is the way individuals see the world.

According to the viewpoint, transformation processes are in charge of turning off the process's input and output. A process is defined as any activity or collection of activities who takes one or more inputs, perspective and contributes to them, and produces outputs for consumers or clients.

As a result, the perspective, transformational processes are responsible for turning inputs into outputs.

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journal entries
sold goods costing Rs. 15000 for Rs.5000 profit​

Answers

Answer:

sales cr profit cash dr

The stock market represents small businesses. A. True B. False

Answers

I would say the answer is Falsr

Kahlil, a marketing CEO, usually arrives at the office before others, catches up on emails and other correspondence, and keeps his office neat and clean. Furthermore, Kahlil keeps his door open and encourages suggestions from his team. He leaves office at 5:00 p.m., does not bring work home, and makes sure he participates in all workplace activities. How do leaders such as Kahlil nonverbally communicate the organization’s culture? By acting as role models, coaches, and teachers By using their criteria to reward others By using their criteria to recruit and promote By adequately reacting to major events and crises

Answers

Answer:

By acting as role models, coaches, and teachers

Explanation:

Remember, we are told that as the CEO, Kahlil does certain things not just only telling things to his staff.

Thus, by doing such tasks as keeping his office neat and clean and not bringing work home, he is nonverbally communicating the organization’s culture to his staff; which makes him a  role model, a coach, and teacher to his staff.

Someone taking a course in Web design is affecting what factor of production?

A. physical capital
B. entrepreneurship
C. human capital
D. land​

Answers

Answer:

Someone taking a course in Web design is affecting human capital.

Some taking course work in web designing are affected by the factors of production such as human capital.

Human capital is a concept that is used by economics to give personal tributes that are useful in the production process. They include skills and knowledge and other abilities.

Hence the option C is correct.

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What is the first step in amending the Texas Constitution?

Answers

Answer:

The answer is below

Explanation:

According to Article 17 of the Texas Constitution which is otherwise known as "Mode of Amending the Constitution of This State"

The first step in amending the Texas Constitution is that the Texas State Legislature must make a proposition of the amendment in a joint resolution, involving both the Texas State Senate and the Texas House of Representatives. This joint resolution, however, can emerge in either the House or the Senate.

When a line cook in a restaurant uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special, the cook is taking part in a

Answers

Answer:

Transformation process.

Explanation:

When a line cook in a restaurant uses raw meat to cook a hamburger that becomes part of the restaurant's Super Burger Special, the cook is taking part in a transformation process.

A transformation process can be defined as the capabilities possessed by an organization, which are then integrated into technology, internal processes, and management, for the singular purpose of converting inputs into outputs in order to meet the needs or requirements of their customers.

In this scenario, the cook uses raw meat as an input in the creation of an output, which is the restaurant's Super Burger Special.

Kala's family is shopping for a large screen TV. The TV they decided on has a retail price of $1,000 at four stores. The
state sales tax is 5%. Each store is offering a different sales promotion, as listed in the table.
Store
A
B
Promotional Offer
$80 rebate
10% discount on price
Store pays all sales tax
$40 rebate with store paying half of sales tax
С
D
Which store has the best deal?
O store A
store B
O store C
O store D
Save and Exit
Next
Submit
Mark this and return

Answers

Sorry this is late but here is the answer...

Answer:

Store B.

Explanation:

Kala's family will get more of a discount at store B. Store B has the 10% off while the competitor stores gave "weaker" deals. Store D has a $40 rebate with a tax. So her family won't go there. Rebates aren't the best option because you have to pay the full amount by a certain time where as a discount, you pay everything there on time. So, the answer is B. I hope this helps.

Answer:

STORE B.

Explanation:

THANKSS!!!

What term is used to describe an experiment run by an ad agency where the ad agency will recruit consumers to come watch a tv series and commercials? The consumer will then answer questions abiut the ads and the agency uses respinses to determine how well the ads will do in the real world

Answers

Answer:

Copy testing.

Explanation:

Copy testing is a term used to describe an experiment run by an ad agency, where the ad agency will recruit consumers to come watch a tv series and commercials. Sequel to this, the consumer will then answer questions about the ads and the agency uses responses to determine how well the ads will do in the real world.

Hence, copy testing refers to the assessment of the efficacy or effectiveness of an advertisement based on set of consumer behavior, responses or feedback before it is then officially aired or transmitted on the predetermined advertising channel.

The process by which prospective buyers "internalize" or consider the information presented by the salesperson is referred to as a black box because:A. sales actions lead to buyer reactions.B. salespeople cannot read a buyer's mind.C. psychological needs outweigh social wants.D. for every stimulus, there must be a response.E. salespeople seem untrustworthy to most buyers.

Answers

Answer:

B. salespeople cannot read a buyer's mind

Explanation:

Since in the question it is mentioned that the prospective buyer or the buyer who wants to purchased considerd that information which is presented by the seller that called as a black box as the sales people is not able to read the purchaser mind as they are also a human and they dont know what actually the buyer wants until the buyer didnt tell them about their need

Therefore, the correct option is B.

hello im Michal the fox how may tails i have three,two or,four

Answers

Answer:

2

Explanation:

Suppose the government requires beer drinkers to pay a $3 on each case of beer that they purchase. a. Illustrate the market for beer without the tax. Show the price the buyers pay, the price the sellers receive, and the quantity bought and sold without the tax. b. Now illustrate the market for beer with the per-case tax on consumers. Show the price paid by consumers, the price received by sellers, and the quantity bought and sold with the tax. c. Indicate where one can find the amount of producer surplus in the market with a tax. What about consumer surplus

Answers

Explanation:

a).In the following graph, [tex]$ D_0 \text{ and}\ S_0 $[/tex] are the pre tax demand the supply curve that intersects at the point A with price [tex]$P_0$[/tex] (the price paid by the buyers = price received by sellers) and the quantity [tex]$Q_0$[/tex]  (quantity bought = quantity sold)

b). The tax on the consumers will decrease the demand of the beer shifting the demand curve leftwards from the [tex]$ D_0 \text{ and}\ D_1 $[/tex]  intersecting point [tex]$S_0$[/tex] at point B. Price paid by the buyers is point [tex]$P_1$[/tex], price received by the producers is [tex]$P_2$[/tex]  and the tax per unit is [tex]$(P_1 - P_2)$[/tex] , which is equal to the vertical distance BC. Quantity bought and sold is lower at [tex]$Q_1$[/tex].

c). Producer surplus is the area between supply curve and the price received by the producers, which is equal to the area [tex]$P_2BE$[/tex]. And the consumer surplus may be the area between the price paid by the consumers and the demand curve, and is equal to the area [tex]$P_1CD$[/tex].

The rules an organization establishes to guide behavior are called
A. respect
B. crimes
C. laws
D. ethics

Answers

Answer:

ethics

Explanation:

Answer:D

Explanation:a p e x

If you owe $2000 on a credit card, at an 18.4% interest rate and you make $50
monthly payments, how long will it take you to pay this card off?

Answers

Answer: A

Explanation:

It will take 7.5 years

What are some of the issues that arise in evaluating and maintaining control over foreign operations? Multiple Choice

A. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency Management of new company is difficult

B. Deciding whether to factor out of the performance measure items over which the foreign operation’s manager has no control

C. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency and

D. whether to factor out of the performance measure items over which the foreign operation’s manager has no control

Answers

Answer:

B. Deciding whether to factor out of the performance measure items over which the foreign operation’s manager has no control

C. Deciding whether to evaluate performance on the basis of foreign currency or parent company reporting currency and

Explanation:

Foreign operations refer to an entity that could be in terms of an associate, subsidiary, jointly controlled in which the activities are based in a country irrespective of the entity i.e. reported

Therefore in the given case, the issued can be with the performance measures that have no control  and it should depend upon the parent company in which the currency is reported

Hence, the correct option is B and C

What is the definition of creative command

Answers

Answer:

Explanation:

a set of various licenses that allow people to share their copyrighted work to be copied, edited, built upon

To make a skirt out of fabric, Connie needs 1 3/4 yards of fabric. If Connie bought 10 1/2 yards of fabric at a sale, how many skirts could she make? Show your work. To make a skirt out of fabric, Connie needs 1 3/4 yards of fabric. If Connie bought 10 1/2 yards of fabric at a sale, how many skirts could she make? Show your work.

Answers

Answer:

6 skirts

Explanation:

Given

[tex]1\ Skirt = 1\frac{3}{4}\ fabric[/tex]

Required

Number of skirts for [tex]10\frac{1}{2}\ fabric[/tex]

Represent the required number of skirts by x

To solve for this, we simply divide [tex]10\frac{1}{2}[/tex] by [tex]1\frac{3}{4}[/tex]

[tex]x = 10\frac{1}{2} / 1\frac{3}{4}[/tex]

Convert to mixed numbers

[tex]x = \frac{21}{2} / \frac{7}{4}[/tex]

Rewrite as multiplication

[tex]x = \frac{21}{2} * \frac{4}{7}[/tex]

[tex]x = \frac{21 * 4}{2 * 7}[/tex]

[tex]x = \frac{84}{14}[/tex]

[tex]x = 6[/tex]

Hence, she could make 6 skirts

Which of the following agencies was not embroiled in a tedious and often unfriendly struggle to be the first to prosecute key parties in the Livent fraud?
1. Federal Trade Commission
2. SEC
3. Ontario Securities Commission
4. Royal Canadian Mounted Police
5. U.S. Department of Justice

Answers

Answer:

1. Federal Trade Commission

Explanation:

The Livent Inc co-founders found the guilts based on the counts out of which one is of forgery that is occured on a day to day business dealings link with the defunct company.  

Here the following agencies were included i.e. Security exchange commission(SEC), OSC, U.S justice department, and RCMP

But does not involved the federal trade commission

Therefore the same is to be considered

hence, the correct option is 1.

Hillary’s family is thinking of relocating to a different city to save money. They set up a budget comparing the cost of living in four cities.

Answers

Answer:

I think the answer is Santa Fe

Explanation:

Ethical standards in business are principles or codes for how a business conducts itself with ___, customers, and the public.

A. Other businesses
B.Employees
C.the government
D.charity organizations

Answers

Answer:

B. Employees

Explanation:

The correct answer is B)Employee’s hope this helps.

In a free market the________ tells producers how much to produce.

Answers

Answer:consumers

Explanation:

In a free-market system, consumers and producers have sovereignties that drive the market and decisions made to ensure that supply and demand

I am Stuck Please Help
Interview five family members or friends. Ask them how many vegetable snack packs they would buy in a seven-day week at these prices: $2.75, $3.25, $4.75, $5.25, and $6.00. Make a table to record the quantities of snack packs they would purchase at each price. Give at least two reasons why you think the price of a product might vary.

Give at least two reasons why a consumer might buy more or less of something depending on the price. Write two paragraphs discussing the relationships between price and demand, and supply and demand.

Ask at least five people of various ages the following questions: Do you believe the economy is in dire straits? Why or why not? What do you see as the outcome of the current downturn? How are you directly affected, and what worries you about the state of the economy? Do you believe it can be "fixed"? If so, how?

Answers

Answer:

Explanation:

In other words, the higher the price, the lower the quantity demanded. The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good.

What are common traits of American business owners, according to the U.S census bureau?

Answers

Answer:

The answer is below

Explanation:

Common traits of American business owners, according to the U.S census bureau are the following:

1. Approximately sixty- four percent of business owners had obtained some college education prior to starting the business

2. Over 60 percent of business owners expended their personal capital or family capital at the initial stage

3. Over fifty percent of the business owners worked overtime, despite having employees

4. Nearly fifty percent of the businesses were home-based.

What is scarcity? I need to know

Answers

Answer:

being in short supply of something

Answer: An inadequate amount of something; a shortage.

Scarcity means to be on low of something. So if you were low on stuff in your house like paper towels that means you have a shortage of something.

Which is an example of E-commerce? A. Hot dog stand B. Cable company C. Online boutique D. Car wash

Answers

An example of an E-commerce is an online boutique.

What is E-commerce?

E-commerce is a business that exists online. For example, if a person establishes sells items on a website or on a social media platform, the person is operating an e-commerce. An example of an e-commerce business is ASOS.

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Provide three examples of how busineses respond to the corona pandemic as part of social responsibility

Answers

Answer:

We have to avoid our citizens for doing some wrong work

Answer:

SCARED ,PANICED ,AND LOST HOPE

BUT SOME WERE STRONG  IT JUST DEPENDS.

Explanation:

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