Ch17 solutions 22-23

Ch17 solutions 22-23 - CHAPTER 17 Investments SOLUTIONS TO...

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CHAPTER 17 Investments SOLUTIONS TO EXERCISES *EXERCISE 17-22 (25–30 minutes) (a) May 1, 2007 Memorandum entry to indicate entering into the futures contract. (b) June 30, 2007 Futures Contract. ..................................................... 4,000 Unrealized Holding Gain or Loss— Equity [($520 – $500) X 200 ounces]. ......... 4,000 (c) September 30, 2007 Futures Contract. ..................................................... 1,000 Unrealized Holding Gain or Loss— Equity [($525 – $520) X 200 ounces]. ......... 1,000 (d) October 5, 2007 Titanium Inventory. .................................................. 105,000 Cash ($525 X 200 ounces). .............................. 105,000 Cash. .......................................................................... 5,000 Futures Contract. .............................................. 5,000 [($525 – $500) X 200 ounces] Note to instructor : In practice, futures contracts are settled on a daily basis; for our purposes, we show only one settlement for the entire
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Ch17 solutions 22-23 - CHAPTER 17 Investments SOLUTIONS TO...

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