6. Quick enters into a foreign exchange forward hedge of a foreign currency asset. Which of the following hedges qualifies as a effective fair value hedge for the 3 months ended December 31, 2014.

1. Revaluation gain on FC Asset of $10,000; Gain on FC hedge of $9000
2. Revaluation gain on FC Asset of $10,000: Loss on FC hedge of $15,000
3. Revaluation loss on FC Asset of $20,000; Loss on FC hedge of $18,000
4. Revaluation loss on FC Asset of $20,000; Gain on FC hedge of 18,000
5. Revaluation gain on FC Asset of $10,000; No gain or loss on FC hedge

7. The following represents the inflation rates of foreign country X for the past 4 years:

Year 1: 35%

Year 2: 20%

Year 3: 25%

Year 4: 30%

Which statement is correct about the selection of a functional currency for country X at the end of year 4.

1. Country X is highly inflationary; the US dollar must be used
2. Country X is highly inflationary; the foreign currency must be used
3. Country X is not highly inflationary; the US dollar must be used
4. Country X is not highly inflationary; the foreign currency must be used
5. Country X is not highly inflationary; either the US dollar or the foreign currency may be used depending on the factors to determine the functional currenc

8. Which of the following effective hedges is not permitted under GAAP

a. hedge of an foreign currency asset or liability

b. hedge of a foreign currency firm commitment

c. hedge of a foreign currency forecasted transaction

d. hedge of a net investment in a foreign currency

e. all of the above are permitted under GAAP

9. Final distribution of partnership cash in made in according to what rule:

a. partner with highest capital balance paid first

b. partner who joined the partnership earliest is paid first

c. partner who worked the hardest is paid first

d. partners are paid in proportion to original profit and loss percentages

e. partners are paid in proportion to final capital balances