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P12-1 On June 1, 2011, TCO enters into a forward agreement with XYZ to buy 100,000 gallons of fuel oil at $2.40 on December 31,
P12-1 On June 1, 2011, TCO enters into a forward agreement with XYZ to buy 100,000 gallons of fuel oil at $2.40 on December 31, 2011. At the time of inception of the forward, the price of fuel oil is $2.45. On December 31, 2011 the price of fuel oil is $2.48. The contract allows for net settlement. REQUIRED 1. What is the net settlement on the forward contract
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Horngrens Accounting The Managerial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
12th edition
013448682X, 978-0134486826
