C. (21 points) On January 3, 2019, Hassert Company owns a $6,000,000, note receivable that matures on 1/1/2022 with a fixed interest rate of 6% receivable each June 30 and December 31. By the end of June of 2019, Hassert was concerned that interest rates would rise. On July 1, 2019, Hassert entered into an interest rate swap with a bank. The swap had a notional amount of $6,000,000 and called for Hassert to receive a variable rate and Hassert would pay the bank a fixed rate of 6%. The variable rates are reset semiannually beginning on July 1, 2019. Differences between rates on the swap are settled semiannually on June 30 and December 31. Variable rates and the value of the swap on selected dates are as follows. Date 7/1/19 12/31/19 6/30/20 Swap Value $0 $18,900 $16.200 Variable Rate 6.10% 6.40% 6.60% Required: Parts c, f, h, k and m are l point each. The rest are 2 points each 34) This is: A Fair Value Hedge A Cash Flow Hedge Not a Hedge Circle one 35) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative Interest Rate Swap? 36) If your answer to 35 was not zero, would the amount be an asset or liability? If zero put neither 37) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Note Receivable? 38) On December 31, 2019, what amount of cash does Hassert receive or pay due the Swap? 39) If your answer to 38 was not zero, indicate whether is received or paid. If zero put neither 40) On the Income Statement for the 6 months ended on December 31, 2019, what amount, if any, would appear as a gain or loss from the Interest Rate Swap? 41) If your answer to 40 was not zero, indicate whether it is a gain or loss. If zero put neither 42) On the Income Statement for the 6 months ended on December 31, 2019, what amount, if any, would appear as interest revenue? 43) On the Statement of Comprehensive income for the 6 months ended on December 31, 2019, what amount, if any, would appear as a gain or loss from the Interest Rate Swap as Other Comprehensive Income? 44) If your answer to 43 is not zero, indicate whether it is a gain or loss. If zero put neither 45) On June 30, 2020, what amount of cash does Hassert receive or pay due the Swap? 46) If your answer to 45 was not zero, indicate whether is received or paid. If zero put neither C. (21 points) On January 3, 2019, Hassert Company owns a $6,000,000, note receivable that matures on 1/1/2022 with a fixed interest rate of 6% receivable each June 30 and December 31. By the end of June of 2019, Hassert was concerned that interest rates would rise. On July 1, 2019, Hassert entered into an interest rate swap with a bank. The swap had a notional amount of $6,000,000 and called for Hassert to receive a variable rate and Hassert would pay the bank a fixed rate of 6%. The variable rates are reset semiannually beginning on July 1, 2019. Differences between rates on the swap are settled semiannually on June 30 and December 31. Variable rates and the value of the swap on selected dates are as follows. Date 7/1/19 12/31/19 6/30/20 Swap Value $0 $18,900 $16.200 Variable Rate 6.10% 6.40% 6.60% Required: Parts c, f, h, k and m are l point each. The rest are 2 points each 34) This is: A Fair Value Hedge A Cash Flow Hedge Not a Hedge Circle one 35) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative Interest Rate Swap? 36) If your answer to 35 was not zero, would the amount be an asset or liability? If zero put neither 37) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Note Receivable? 38) On December 31, 2019, what amount of cash does Hassert receive or pay due the Swap? 39) If your answer to 38 was not zero, indicate whether is received or paid. If zero put neither 40) On the Income Statement for the 6 months ended on December 31, 2019, what amount, if any, would appear as a gain or loss from the Interest Rate Swap? 41) If your answer to 40 was not zero, indicate whether it is a gain or loss. If zero put neither 42) On the Income Statement for the 6 months ended on December 31, 2019, what amount, if any, would appear as interest revenue? 43) On the Statement of Comprehensive income for the 6 months ended on December 31, 2019, what amount, if any, would appear as a gain or loss from the Interest Rate Swap as Other Comprehensive Income? 44) If your answer to 43 is not zero, indicate whether it is a gain or loss. If zero put neither 45) On June 30, 2020, what amount of cash does Hassert receive or pay due the Swap? 46) If your answer to 45 was not zero, indicate whether is received or paid. If zero put neither