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ParCorp bought inventory from a Canadian company for 100,000 Canadian dollars (C$) on Dec 2, 20X8 with settlement to occur in 60 days. On Dec
ParCorp bought inventory from a Canadian company for 100,000 Canadian dollars (C$) on Dec 2, 20X8 with settlement to occur in 60 days. On Dec 2, 20X8, ParCorp entered into a 60-day forward contract to buy 100,000 Canadian dollars at a forward rate of 1 C$ = $.94. The forward contract was not designated as a hedge. The forward rate on Dec 31, 20X8 for an exchange on Jan 30, 20X9 is 1 C$ = $0.935. The Dec 2, 20X8 and Dec 31, 20X8 spot rates were 1C$=$0.945 and 1C$ = $0.925. Required. Record all 20X8 journal entries of ParCorp.
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