19,000 dinars to be made on March 1, 2021 The materials are consumed immediately and recognized as cost of goods sold at the of purchase. On December 1, 2020, Icebrcaker enters into a forward contract to purchase 19,000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various cates are as follows: Forward Rate Date December 1, 2020 December 31, 2029 Harch 1, 2021 Spot Rate $ 3.70 3. 8e 3.95 (to March 1, 2021) $ 3.775 3.900 N/A a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journa entries for the import purchase and foreign currency forward contract in U.S. dollars. 2. What is the impact on 2020 net income? e-3. What is the impact on 2021 net income? a-4. What is the Impact on net income over the two accounting perlods? b-1. Assuming that icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepere journal

Haresh

On December 12, 20X5, Dahl Company entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows:   Spot Rate Forward Rate for March 12, 20X6 December 12, 20X5 $ 0.88 $ 0.90 December 31, 20X5 0.98 0.93   3. Dahl entered into the first forward contract to manage the foreign currency risk from a purchase of inventory in November 20X5, payable in March 20X6. The forward contract is not designated as a hedge. At December 31, 20X5, what amount of foreign currency transaction gain should Dahl include in income from this forward contract? multiple choice $10,000 $0 $5,000 $3,000   4. Dahl entered into the second forward contract to hedge a commitment to purchase equipment being manufactured to Dahl’s specifications. At December 31, 20X5, what amount of foreign currency transaction gain should Dahl include in income from this forward contract? multiple choice $10,000 $0 $5,000…

On December 12, 20X5, Dahl Company entered into three forward exchange contracts, each to purchase 100,000 francs in 90 days. The relevant exchange rates are as follows:   Spot Rate Forward Rate for March 12, 20X6 December 12, 20X5 $ 0.88 $ 0.90 December 31, 20X5 0.98 0.93   1. The following information applies to Denton Incorporated’s sale of 10,000 foreign currency units under a forward contract dated November 1, 20X5, for delivery on January 31, 20X6:   11/1/X5 12/31/X5 Spot rates $ 0.80 $ 0.83 30-day forward rate 0.79 0.82 90-day forward rate 0.78 0.81 1. Denton entered into the forward contract to speculate in the foreign currency. In its income statement for the year ended December 31, 20X5, what amount of loss should Denton report from this forward contract? multiple choice $400 $300 $200 $0   2. On September 1, 20X5, Johnson Incorporated entered into a foreign exchange contract for speculative purposes by purchasing €50,000 for…

Problem 9-24 (Algo) (LO 9-2) On December 20, 2020, Momeier Company (a U.S.-based company) sold parts to a foreign customer at a price of 145,000 rials. Payment is received on January 10, 2021. Currency exchange rates are as follows: Date December 20, 2020 December 31, 2020 January 10, 2021 U.S. Dollar per Rial $ a. The rial receivable exchange b. The rial receivable exchange 1.24 1.21 1.17 a. How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier's 2020 income statement? b. How does the fluctuation in the U.S. dollar per rial exchange rate affect Momeier's 2021 income statement? in U.S. dollar value, resulting in a foreign of in 2020. in U.S. dollar value, resulting in a foreign of in 2021

Clark Co., a U.S. corporation, sold inventory on December 1, 2021, with payment of 12,000 British pounds to be received in sixty days. The pertinent exchange rates were as follows: Spot rate: $1.831 Dec. 31 Spot rate: $1.976 Jan. 30 Spot rate: $1.768 Dec. 1 For what amount should Sales be credited on December 1? Multiple Choice $21,216. $21,972. $23,712. $19,760. $18,310.

Kk.233.

On December 12, 2022, Tin Company entered into a forward exchange contract to purchase 500,000 euros in 90 days.The relevant exchange rates are as follows:                                                             Spot rate            Forward rate (for 3/12/2023)November 30, 2022                              P0.56                              P0.57December 12, 2022                              P0.57                              P0.58December 31, 2022                              P0.61                              P0.60March 12, 2023                                     P0.62                              P0.62 The purpose of this forward contract is to hedge a purchase of inventory in November 30, 2022, payable in March 2023. How much is the net forex gain/loss December 31, 2022? (just encode the absolute amount)

7

Brandlin company of anaheim, california, sells parts to a foreign customer on december 1, 2017, with payment of 24,000 korunas to be received on march 1, 2018. Brandlin enters into a forward contact on december 1, 2017 to sell 24,000 korunas on march 1, 2018. Relevant exchange rates for the korunas on various dates are as follow: date                                spot rate                 forward rate december 1, 2017           4.20                          4.275 december 31, 2017         4.30                           4.400 march 1, 2018                  4.45                            n/a   brandli's incremental borrowing rate is 12 percent. The present value factor for two months at annual interest rate of 12 percent  (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at december 31. 1. Assuming that brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount…