What was the impact on Mosby's 2019 net income as a result of this fair value hedge of a firm commitment?
A) $ 1,800.00 decrease.
B) $ 2,500.00 increase.
C) $ 2,500.00 decrease.
D) $188,760.60 increase.
E) $188,760.60 decrease.

Question

Quizplus · Accepted Answer

The fair value hedge provided protection against currency fluctuation, resulting in a gain of $188,760.60. Therefore, Mosby's net income increased by $188,760.60.

What Was the Impact on Mosby's 2019 Net Income as a Result