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Clown Co. ordered parts costing 200,000 Foreign Currency Units (FCU) from a foreign supplier on October 1 when the spot rate was $0.27 per FCU.
Clown Co. ordered parts costing 200,000 Foreign Currency Units (FCU) from a foreign supplier on October 1 when the spot rate was
$0.27
per FCU. A one-month forward contract was signed on that date to purchase 200,000 FCU at a forward rate of
$0.27
per FCU. On October 31 , the forward rate was
$0.25
. On November 15 th, when the parts were received and payment was made, the spot rate was
$0.24
per FCU. At what amount should firm commitment be reported at November 15 th?\
$6,000
asset\
$4,000
liability\
$4,000
asset\
$200,000
\
$6,000
liability
Clown Co. ordered parts costing 200,000 Foreign Currency Units (FCU) from a foreign supplier on October 1 when the spot rate was $0.27 per FCU. A one-month forward contract was signed on that date to purchase 200,000 FCU at a forward rate of $0.27 per FCU. On October 31 , the forward rate was $0.25. On November 15 th, when the parts were received and payment was made, the spot rate was $0.24 per FCU. At what amount should firm commitment be reported at November 15th? $6,000 asset $4,000 liability $4,000 asset $200,000 $6,000 liability
Clown Co. ordered parts costing 200,000 Foreign Currency Units (FCU) from a foreign supplier on October 1 when the spot rate was
$0.27
per FCU. A one-month forward contract was signed on that date to purchase 200,000 FCU at a forward rate of
$0.27
per FCU. On October 31 , the forward rate was
$0.25
. On November 15 th, when the parts were received and payment was made, the spot rate was
$0.24
per FCU. At what amount should firm commitment be reported at November 15 th?\
$6,000
asset\
$4,000
liability\
$4,000
asset\
$200,000
\
$6,000
liability
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