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 Swap Value Variable Rate

7/1/19 $0 6.10%

12/31/19 $18,900 6.40%

6/30/20 $16.200 6.60%

21) This is: A Fair Value Hedge A Cash Flow Hedge Not a Hedge Pick one

22) On the June 30, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative-Wheat Futures Contract?

23) If your answer to 22 was not zero, would the amount be an asset or liability? If zero put neither.

24) On the July 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative-Wheat Futures Contract?

25) If your answer to 24 was not zero, would the amount be an asset or liability? If zero put neither.

26) On the Income Statement for month ended June 30, 2019, what amount, if any, would appear as a gain or loss?

27) If your answer to 26 is not zero, is it a gain or loss? If zero put neither.

28) On the Income Statement for month ended July 31, 2019, what amount, if any, would appear as a gain or loss?

29) If your answer to 28 is not zero, is it a gain or loss? If zero put neither.

30) On the Income Statement for yearended July 31, 2019, what amount, if any, would appear as a gain or loss?

31) If your answer to 30 is not zero, is it a gain or loss? If zero put neither.

32) On the Statement of Comprehensive income for year ended July 31, 2019, what amount, if any, would appear as a gain or loss as Other Comprehensive Income?

33) If your answer to 32 is not zero, is it a gain or loss? If zero put neither.