A (16 points) Pearson Industries uses platinum in its manufacturing process. The company will need 1,000 troy ounces of platinum in January of 2020 for a production run in that month. The company is price of platinum will rise during the next several months. On October 14, 2019. Pearson acquired a futures contract to buy 1,000 troy ounces of platinum On January 2, 2020 at a price of $480 per troy ounce. Spot prices and current futures prices per troy ounce of platinum are as follows: Futures price per oz (current) Spot price per oz Fair Value of Contract Oct. 14 $480 $480 Dec. 31 $525 $524 Jan 2 $525 $525 $ 0 On January 2, 2020, the company settled the options and purchased 1,000 troy ounces of platinum for $525 per ounce. Required: Parts c, e, g and are l point each. The rest are 2 points each 11) This is: A Fair Value Hedge A Cash Flow Hedge Not a Hedge Pick one 12) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative-Platinum Futures Contract? 13) If your answer to 12 was not zero, would the amount be an asset or liability? If zero put neither. 14) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Inventory of Platinum? 15) If your answer to 14 was not zero, would the amount be an asset or liability? If zero put neither. 16) On the Income Statement for year ended December 31, 2019, what amount, if any, would appear as a gain or loss from the Derivative Platinum? 17) If your answer to 16 is nonzero, is it a gain or loss? If zero put neither. 18) On the Statement of Comprehensive income for year ended December 31, 2019, what amount, if any, would appear as a gain or loss as Other Comprehensive Income? 19) If your answer to 18 is nonzero, is it a gain or loss? If zero put neither. 20) Assume the platinum purchased on January 2, 2020 was used to make inventory that was sold in 2020. On the Income Statement for year ended December 31, 2020, what amount, if any, would be included in cost of goods sold related to the platinum? A (16 points) Pearson Industries uses platinum in its manufacturing process. The company will need 1,000 troy ounces of platinum in January of 2020 for a production run in that month. The company is price of platinum will rise during the next several months. On October 14, 2019. Pearson acquired a futures contract to buy 1,000 troy ounces of platinum On January 2, 2020 at a price of $480 per troy ounce. Spot prices and current futures prices per troy ounce of platinum are as follows: Futures price per oz (current) Spot price per oz Fair Value of Contract Oct. 14 $480 $480 Dec. 31 $525 $524 Jan 2 $525 $525 $ 0 On January 2, 2020, the company settled the options and purchased 1,000 troy ounces of platinum for $525 per ounce. Required: Parts c, e, g and are l point each. The rest are 2 points each 11) This is: A Fair Value Hedge A Cash Flow Hedge Not a Hedge Pick one 12) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative-Platinum Futures Contract? 13) If your answer to 12 was not zero, would the amount be an asset or liability? If zero put neither. 14) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Inventory of Platinum? 15) If your answer to 14 was not zero, would the amount be an asset or liability? If zero put neither. 16) On the Income Statement for year ended December 31, 2019, what amount, if any, would appear as a gain or loss from the Derivative Platinum? 17) If your answer to 16 is nonzero, is it a gain or loss? If zero put neither. 18) On the Statement of Comprehensive income for year ended December 31, 2019, what amount, if any, would appear as a gain or loss as Other Comprehensive Income? 19) If your answer to 18 is nonzero, is it a gain or loss? If zero put neither. 20) Assume the platinum purchased on January 2, 2020 was used to make inventory that was sold in 2020. On the Income Statement for year ended December 31, 2020, what amount, if any, would be included in cost of goods sold related to the platinum