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Please answer A and B, thank you! monthly basis. Relevant exchange rates for the dinar on various dates are as follows: ooks and prepare financial
Please answer A and B, thank you! monthly basis. Relevant exchange rates for the dinar on various dates are as follows: ooks and prepare financial statements at December 31 . 32. Use the same facts as in Problem 31 except that Icebreaker Company perchases materials from a foreign supplier on December 1. 2020, with payment of 16.000 dinars to be made on March 1. 2021. The materials are consumed immediately and recognized as cost of soods sold at the date of purchase. On December 1. 2020. Icebreaker enters into a forward contract to purchase I6.000 dinars on March I. 2021. a. Assaming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. What is the impact on 2020 net incone? What is the impact on 2021 net income? What is the impact on net income over the two accounting periods? b. Assunting that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable. prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. What is the impact on net income in 2020 and in 2021? What is the impact on net income over the two accounting periods? monthly basis. Relevant exchange rates for the dinar on various dates are as follows: ooks and prepare financial statements at December 31 . 32. Use the same facts as in Problem 31 except that Icebreaker Company perchases materials from a foreign supplier on December 1. 2020, with payment of 16.000 dinars to be made on March 1. 2021. The materials are consumed immediately and recognized as cost of soods sold at the date of purchase. On December 1. 2020. Icebreaker enters into a forward contract to purchase I6.000 dinars on March I. 2021. a. Assaming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. What is the impact on 2020 net incone? What is the impact on 2021 net income? What is the impact on net income over the two accounting periods? b. Assunting that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable. prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars. What is the impact on net income in 2020 and in 2021? What is the impact on net income over the two accounting periods
Please answer A and B, thank you!
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