Problem to live news to Questions 5 to 10 using the Information in Problem 1 Problem 1: On Dec 5, 2016. US fun purchased inventory for 400.000 Pounds for which the payment will be made on March 20, 2018 The firm's focal year ends on December 31. Following are the spot rates and forward rates for Pound Dates Dec 5, 2018 Dec 31, 2018 Mar 20 2018 Spot Rate St 040 $1.045 $1.050 Forward Rate $1.00 $1.000 $1.050 On Dec. 5,9010 the US fimentered into a forward contract to buy 400,000 Pounds on March 20, 2018 for $1.042 The entry to record the forward contract on Dec will be Detit foreign curry recible $410.000, credit dollars payable 5416.800 De dollars receivab 5415, 100, di Sogn currency Day 16.00 Doornecevable $410,000, crede doors able $410.000 Debitors 416,000 credit regn currency payable $416.000 Moving to another question will save this response Question 6 The forward rate on Dec 5 for $1.042 means that on Dec 5 a person can enter to a contract to buysel 400.000 Euros on Mar 20 at the rate of 1.042 True O False Question 7 For the forward contract, the gain or loss recorded on Dec 31 will be O Gain of $2,800 Loss of $2,800 O Gain of $2,000 O Loss of $2,000 For the forward contract, the gain or loss recorded on Mar 20 will be O Gain of $4,400 O Loss of $4,400 Gain of $6,000 Loss of $6,000 On Mar 20, to carry out the forward contract, the US firm will O Give cash amount of $416,800 to the exchange dealer. O Receive cash amount of $424,000 from the exchange dealer. Give cash amount of $424,000 to the exchange dealer Receive cash amount of $424,000 from the exchange dealer Question 10 On Dec 10. Brink bylem, a company based in USA, Gold get to come into a 400,000 on the an indirect exchange rate Fase Problem to live news to Questions 5 to 10 using the Information in Problem 1 Problem 1: On Dec 5, 2016. US fun purchased inventory for 400.000 Pounds for which the payment will be made on March 20, 2018 The firm's focal year ends on December 31. Following are the spot rates and forward rates for Pound Dates Dec 5, 2018 Dec 31, 2018 Mar 20 2018 Spot Rate St 040 $1.045 $1.050 Forward Rate $1.00 $1.000 $1.050 On Dec. 5,9010 the US fimentered into a forward contract to buy 400,000 Pounds on March 20, 2018 for $1.042 The entry to record the forward contract on Dec will be Detit foreign curry recible $410.000, credit dollars payable 5416.800 De dollars receivab 5415, 100, di Sogn currency Day 16.00 Doornecevable $410,000, crede doors able $410.000 Debitors 416,000 credit regn currency payable $416.000 Moving to another question will save this response Question 6 The forward rate on Dec 5 for $1.042 means that on Dec 5 a person can enter to a contract to buysel 400.000 Euros on Mar 20 at the rate of 1.042 True O False Question 7 For the forward contract, the gain or loss recorded on Dec 31 will be O Gain of $2,800 Loss of $2,800 O Gain of $2,000 O Loss of $2,000 For the forward contract, the gain or loss recorded on Mar 20 will be O Gain of $4,400 O Loss of $4,400 Gain of $6,000 Loss of $6,000 On Mar 20, to carry out the forward contract, the US firm will O Give cash amount of $416,800 to the exchange dealer. O Receive cash amount of $424,000 from the exchange dealer. Give cash amount of $424,000 to the exchange dealer Receive cash amount of $424,000 from the exchange dealer Question 10 On Dec 10. Brink bylem, a company based in USA, Gold get to come into a 400,000 on the an indirect exchange rate Fase