(3) How much cash was received when the account was settled? EXERCISE 12-8 Fair Value Hedge (Unrecognized Firm Commitment) La Vanderbilt Clothing Company placed a clothing order with a company located in Taiwan. The order was placed on November 1, 2014, for delivery on May 1, 2015. Vanderbilt agreed to pay for the goods on May 1, 2015, with the delivery of 5,000,000 Taiwan dollars. To protect against fluctuations in the exchange rate, the company entered into a forward contract on November 1, 2014, to buy 5,000,000 Taiwan dollars on May 1, 2015, for $.02634 per unit. Chapter 12 Accounting for Foreign Currency Transactions and Hedging Foreign Exchange Risk Direct exchange rates per Taiwan dollar on specific dates are as follows: Date Spor Race November 1, 2014 December 31, 2014 May 1, 2015 Forward Rate Manurity May 5 02634 1.02735 S.02631 02740 02591 Required: Prepare the journal entries to be made by Vanderbil transactions described above Clothing Company during 2014 and 2015 to account for the (3) How much cash was received when the account was settled? EXERCISE 12-8 Fair Value Hedge (Unrecognized Firm Commitment) La Vanderbilt Clothing Company placed a clothing order with a company located in Taiwan. The order was placed on November 1, 2014, for delivery on May 1, 2015. Vanderbilt agreed to pay for the goods on May 1, 2015, with the delivery of 5,000,000 Taiwan dollars. To protect against fluctuations in the exchange rate, the company entered into a forward contract on November 1, 2014, to buy 5,000,000 Taiwan dollars on May 1, 2015, for $.02634 per unit. Chapter 12 Accounting for Foreign Currency Transactions and Hedging Foreign Exchange Risk Direct exchange rates per Taiwan dollar on specific dates are as follows: Date Spor Race November 1, 2014 December 31, 2014 May 1, 2015 Forward Rate Manurity May 5 02634 1.02735 S.02631 02740 02591 Required: Prepare the journal entries to be made by Vanderbil transactions described above Clothing Company during 2014 and 2015 to account for the