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Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2019, with payment of 1 million Korean won to be received
Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2019, with payment of 1 million Korean won to be received on January 15, 2020. The following exchange rates applied:
Date | Spot Rate | Forward Rate |
Dec. 16, 2019 | $0.0092 | $0.0098 |
Dec. 31, 2019 | $0.0090 | $0.0093 |
Jan. 15, 2020 | $0.0095 | N/A |
Assuming a forward contract was entered into on December 16 and fair value hedge accounting is applied, what would be the net impact on Car Corp.'s 2020 income statement related to this transaction?
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