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Need ASAP please!! QUESTION 1 On November 1, 2020. Americo, a U.S.company with fiscal year-end on December 31 purchased inventory from a company in Spain
Need ASAP please!! QUESTION 1 On November 1, 2020. Americo, a U.S.company with fiscal year-end on December 31 purchased inventory from a company in Spain for 30,000 euro (with payment de on February 1, 2021. The following foreign exchange rates are available: Spot Rate Forward Rate for 2/1/2021 Delivery November 1, 2020 51.61 $1.59 December 31, 2020 $1.65 $1.62 February 1, 2021 51.60 On March 4.2021. Americo sold all the inventory bought from the Spain supplier for U.S. $70,000 Assume that on November 1, 2020. Americo entered into a 90 day forward contract to purchase30,000 and designated this forward contract as a cash flow her. Asime that this hedge is highly effective and ignore income tax how much is the amount of net income . net income to be reported on Americo's income statement attributable to this hedge for 2020 and 20201 respectively? (Hint: How did Americo designate this forward contract) A. 50 for 2020 and 5600 income for 2021 B. 5900 income for 2020 and 5600 loss for 2025 CSO for 2020 and 5300 income for 2021 0.50 for 2020 and 50 for 2021 Click Save and submit to and submit Clio Save All Arms to all
Need ASAP please!!
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