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On December 16, 2020, Pump Inc. purchased equipment from a Swiss company for 100,000 francs (SFr), with payment due on February 14, 2021. On December

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On December 16, 2020, Pump Inc. purchased equipment from a Swiss company for 100,000 francs (SFr), with payment due on February 14, 2021. On December 16, 2020, Pump also acquired a 60-day forward contract to purchase 100,000 francs at a forward rate of SFR 1 = $0.67. On December 31, 2020, the forward rate for an exchange on February 14, 2021, is SFr 1 -0.71. . . . The spot rates were: December 16, 2020 1 SFr - $0.68 December 31, 2020 1 SFr - $0.70 February 14, 2021 1 SFr - $0.69 The forward contract is NOT designated as a hedge but is entered into to manage Pump's foreign currency exposed accounts payable. Identify the following statements that are TRUE regarding the journal entries recorded by Pump on December 16, December 31, and February 14. One journal entry on December 16 includes a debit to Equipment of $68,000 and a credit to Accounts Payable (SFr) of $68,000. One journal entry on December 16 includes a debit to Foreign Currency Receivable from Broker (SFr) of $67,000 and a credit to Dollars Payable to Exchange Broker ($) of $67,000. One journal entry on December 31 includes a debit to Foreign Currency Transaction Loss of $2,000 and a credit to Accounts Payable (SFr) of $2,000. One journal entry on December 31 includes a debit to Foreign Currency Receivable from Exchange Broker (SFr) of $4,000 and a credit to Foreign Currency Transaction Gain of $4,000. One journal entry on February 14 includes a debit to Accounts Payable (SFr) of $1,000 and a credit to Other Comprehensive Income of $1,000. One journal entry on February 14 includes a debit to Other Comprehensive Income of $2,000 and a credit to Foreign Currency Receivable from Exchange Broker (SFr) of $2,000. One journal entry on February 14 includes a debit to Dollars Payable to Exchange Broker ($) of $67,000 and a credit to Cash of $67.000. One journal entry on February 14 includes a debit to Foreign Currency Units (SFR) of $69,000 and a credit to Foreign Currency Receivable from Exchange Broker (SFr) of $69,000. One journal entry on February 14 includes a debit to Accounts Payable (SFr) of $69.000 and a credit to Foreign Currency Units (SFr) of $69.000

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