If the company acquires a forward contract to hedge any unfavorable changes in fair value of the
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If the company acquires a forward contract to hedge any unfavorable changes in fair value of the equipment, at what amount is the equipment recorded on the books on November 30, 2009? The forward rate for November 30 settlement is \($1.35.\)
a. $300,000
b. $260,000
c. $270,000
d. None of the above
On October 1, 2008, Short Company ordered some equipment from a supplier for 200,000 euros. Delivery and payment is to occur on November 30, 2009. The spot rates on October 1, 2008 and November 30, 2009 are \($1.50\) and \($1.30.\)
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