Accounts payable 1000 x 44 44000 foreign currency

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Accounts payable – December 31, 2020 ($1,000 x 44) 44,000 Foreign currency gain 1,000 Number 133 Answer A Forward contract receivable – December 1, 2020 ($1,000 x 45) 45,000 Forward contract contract receivable – March 1, 2021 ( $1,000 x 49) 49,000 Foreign carrying gain 4,000 Number 134 Answer C Forward contract receivable – 12/1/2018 ($10,000 x P48 forward rate) 480,000 Forward contract receivable – 12/31/2018 ($10,000 x P51 forward rate) 510,000 Forward contract gain 30,000 Number 135 Answer B
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Accounts payable – November 30, 2018 ($10,000 x P45 spot rate) 450,000 Accounts payable – December 31, 2018 ($10,000 x P50 spot rate) 500,000 Foreign currency loss ( 50,000) Number 136 Answer A Forward contract receivable – 12/1/2018 ($10,000 x P49 forward rate) 490,000 Forward contract receivable – 12/31/2018 ($10,000 x P51 forward rate 510,000 Forward contract gain 20,000 Page 25 Number 137 Answer B November 1, 2020 90-day forward rate ($2,000 x 41) 82,000 December 31, 2020 30-day forward rate ($2,000 x 46) 92,000 Commitment liability 10,000 Number 138 Answer A Forward contract payable – December 31, 2020 ($2,000 x 30-day forward rate 46) 92,000 Forward contract payable – January 31, 2021 (2,000 x 44 spot rate January 31, 2021 80,000 Foreign currency gain 2021 4,000 Number 139 Answer A Forward contract receivable – November 1, 2020 ($1,200 x 42 90-day forward rate) 50,400 Forward contract receivable – December 31, 2020 ($1,200 x 44 30-day forward rate) 52,800 Unrealized gain in OCI 2020 2,400 Number 140 Answer B Forward contract receivable – December 31, 2020 ($1,200 x 44 30-day forward rate) 52,800 Forward contract receivable – January 31, 2021 ($1,200 x 43 spot rate January 31, 2021 51,600 Unrealized loss in OCI 2021 1,200 Number 141 Answer A Unrealized gain – 2020 2,400 Unrealized loss – 2021 (1,200) Cumulative unrealized gain – December 31, 2021 1,200
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Number 142 Answer D Purchase price $1,200 Multiply by spot rate January 31, 2021 43 Cost of equipment 51,600 Number 143 Answer A Option price 40 Market price November 1, 2020 (40) Change in price 0 Multiply by $1,000 Intrinsic value of call option November 1, 2020 0 Option price 40 Market price December 31, 2020 ___44 Change in price 4 Multiply by $1,000 Intrinsic value of call option December 31, 2020 4,000 Intrinsic value of call option November 1, 2020 ___0 Unrealized gain in OCI 2020 4,000 Page 26 Number 144 Answer B Fair value of call option – November 1, 2020 300 Intrinsic value – November 1, 2020 __0 Time value of call option November 1, 2020 300 Fair value of call option – December 31, 2020 4,500 Intrinsic value of call option – December 31, 2020 4,000 Time value of call option – December 31, 2020 500 Time value of call option – November 1, 2020 _300 Unrealized gain in profit or loss 2020 200 Number 145 Answer C Option price 40 Market price January 31, 2021 ___43 Change in price 3 Multiply by $1,000 Intrinsic value of call option January 31, 2021 3,000 Intrinsic value of call option – December 31, 2020 _4,000 Unrealized loss in OCI 2021 1,000
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