On 6/1/X2, an American firm purchased inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 8/1/X2. Also on 6/1/X2, the American firm acquired an option for $1,500 to purchase 100,000 Canadian dollars for delivery on 8/1/X2. The strike price for the option was $0.685. The exchange rates were as follows: The entry to settle the option will include:

Question

On 6/1/X2, an American firm purchased inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 8/1/X2. Also on 6/1/X2, the American firm acquired an option for $1,500 to purchase 100,000 Canadian dollars for delivery on 8/1/X2. The strike price for the option was $0.685. The exchange rates were as follows:  The entry to settle the option will include:

Quizplus · Accepted Answer

The entry to settle the option account will be:
 11eb11de_92dc_6083_ad38_1bd56318f257_TB2014_00

On 6/1/X2, an American Firm Purchased Inventory Costing 100,000 Canadian