On September 1, 2017, Hancock Company entered into two forward exchange contracts to purchase 250,000 euros...
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On September 1, 2017, Hancock Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days. The relevant exchange rates are as follows: Forward Rate For Dec. 1, 2017 1.47 1.48 Spot rate September 1, 2017 September 30, 2017 (year-end) 1.50 1.46 The second forward contract was strictly for speculation. On September 30, 2017, what amount of foreign currency transaction gain should Hancock report in income? On September 1, 2017, Hancock Company entered into two forward exchange contracts to purchase 250,000 euros each in 90 days. The relevant exchange rates are as follows: Forward Rate For Dec. 1, 2017 1.47 1.48 Spot rate September 1, 2017 September 30, 2017 (year-end) 1.50 1.46 The second forward contract was strictly for speculation. On September 30, 2017, what amount of foreign currency transaction gain should Hancock report in income?
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Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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