What was the net impact on Jensen Companys 2016 income as a result of this fair value

Question:

What was the net impact on Jensen Company’s 2016 income as a result of this fair value hedge of a firm commitment?

a. $–0–.

b. $1,319.70 decrease in income.

c. $77,980.30 increase in income.

d. $78,680.30 increase in income.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Advanced Accounting

ISBN: 978-0077862237

6th edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

See More Books

Question Posted: Jan 08, 2015 08:06 AM

See More Questions

What was the net impact on Keefer Company's Year 2 income as a result of this fair value hedge of a firm commitment? a. $0. b. An $839.40 decrease in income. c. A $74,160.60 increase in income. d. A...
What was the net impact on Keefer Companys Year 2 income as a result of this fair value hedge of a firm commitment? a. $0. b. An $839.40 decrease in income. c. A $74,160.60 increase in income. c. A...
What was the net impact on Jensen Companys 2012 income as a result of this fair value hedge of a firm commitment? a. $0. b. $1,319.70 decrease in income. c. $77,980.30 increase in income. d....
Provide a brief description of the JDBC URL.
Use the formula in Exercise 69(a) to find the curvature of the cycloid x = - sin , y = 1 - cos at the top of one of its arches.
Gibsons Nursery has the following information as of December 31,2010: Requirements 1. Compute the rate of inventory turnover for Gibsons Nursery for the year ended December 31,2010. Round the result...
Evaluating a Refinance Decision. Kelly and Tim Browne plan to refinance their mortgage to obtain a lower interest rate. They will reduce their mortgage payments by $83 a month. Their closing costs...
Describe a situation in which the sales value at splitoff method cannot be used but the NRV method can be used for joint-cost allocation.
Last month when Holiday Creations, Inc., sold 42,000 units, total sales were $168,000, total variable expenses were $124,320, and fixed expenses were $39.500 Required: 1. What is the company's...
What are some factual matters that would be relevant for consequentialist arguments regarding sexual behavior?
Multiple Choice Questions 1. On December 1, 2015, Barnum Company (a U.S.-based company) entered into a three-month forward contract to purchase 1,000,000 ringgits on March 1, 2016. The following U.S....
On December 20, 2015, Butanta Company (a U.S. company headquartered in Miami, Florida) sold parts to a foreign customer at a price of 50,000 ostras. Payment is received on January 10, 2016. Currency...
18-2. What is involved in sales management?
Construct a 90% confidence interval for the population standard deviation o at Bank B. Bank B 4.2 5.4 5.9 6.1 6.6 7.7 7.7 8.6 9.3 10.0
Jamila Traders has a head office in Nanyuki and an autonomous branch in Thika. The trial balances of the head office and the branch as at 30 September 2014 were as follows: Head office Sh. Sh. Thika...
Poll Results in the Media USA Today provided results from a survey of 1144 Americans who were asked if they approve of Brett Kavanaugh as the choice for Supreme Court justice. 51% of the respondents...
ROI analysis using the DuPont model a. Firm A has a margin of 7%, sales of $980,000, and ROI of 19.6%. Calculate the firm's average total assets. b. Firm B has net income of $259,200, turnover of...
The test statistic of z = - 2.93 is obtained when testing the claim that p < 2/ 3. This is a left-tailed test. Using a 0.01 significance level, complete parts (a) and (b). a. Find the critical...
What steps may the auditor perform in evaluating the reasonableness of accounting estimates?
United Business Forms capital structure is as follows: Debt ............................................ 35% Preferred stock ........................... 15 Common equity .......................... 50...
Identify and describe the key attributes that might mitigate a red flag, suggesting that no bad act or compliance issues exist.
On January 1, 2013, Piranto acquires 90 percent of Slinton's outstanding shares. Financial information for these two companies for the years of 2013 and 2014 follows: Assume that a tax rate of 40...
King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the financial data of this new subsidiary. King's Road paid a total of $850,000 for Oxford, which has the...
On January 1, 2013, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $720,000. The 10 percent non-controlling interest had an assessed fair value of $80,000 on that date....
Summarize in your own words Sharps, Treynors, and Jensens Measures for assessing portfolio performance with respect to risk. Assess the portfolio performance of mutual fund VDIGX taking into...
Question 1 Slat and Company have recently set up a business which will manufacture and sell a furniture component, the F12 On the 19 August 2021, the company issued 85,000 of share capital for cash....
The following is Addison Corporations contribution format income statements for last month. The company has no beginning or ending inventories. A total of 10,000 units were produced and sold last...

What was the net impact on Jensen Companys 2016 income as a result of this fair value

Question:

Step by Step Answer:

D The easiest way to solve problems 15 and 16 is to prepare journal entries for the option fair valu...View the full answer

Fundamentals of Advanced Accounting

Students also viewed these Accounting questions