_____ On 10/22/06, Sellex entered into a 90-day FX forward involving 100,000 British pounds to hedge a firm sales commitment. Sellex shipped the inventory to the customer on l/20/07. Direct exchange rates on the respective dates are as follows:
What is the FX gain or loss to be reported in earnings for 2006 income statement on the FX forward?
A) $ -0-
B) $500 gain.
C) $1,000 loss.
D) $2,000 gain.
E) $2,000 loss.
Correct Answer:
Verified
Q236: _ On 11/10/06, Buymax entered into a
Q237: _ On 10/22/06, Selmax entered into a
Q238: _ On 11/10/06, Specutex entered into a
Q239: _ On 11/10/06, Buymax entered into a
Q240: _ On 11/10/06, Selmax entered into a
Q242: _ On 8/3/06, Buyox entered into a
Q243: _ On 8/3/06, Buyox entered into a
Q244: _ On 10/10/06, Selcor entered into a
Q245: _ On 10/10/06, Selcor entered into a
Q246: _ On 1/1/06, Putax purchased a 1-year
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents