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REFERENCE: Ref.09_02 Brisco Bricks Purchases Raw Material from Its Foreign Supplier,Bolivian Clay,on

Question 13

Multiple Choice

REFERENCE: Ref.09_02
Brisco Bricks purchases raw material from its foreign supplier,Bolivian Clay,on May 8.Payment of 2,000,000 foreign currency units (FC) is due in 30 days.May 31 is Brisco's fiscal year-end.The pertinent exchange rates were as follows: REFERENCE: Ref.09_02 Brisco Bricks purchases raw material from its foreign supplier,Bolivian Clay,on May 8.Payment of 2,000,000 foreign currency units (FC) is due in 30 days.May 31 is Brisco's fiscal year-end.The pertinent exchange rates were as follows:   -On June 1,CamCo received a contract to sell inventory for ¥500,000.The sale would take place in 90 days.CamCo immediately signed a 90-day forward contract to sell the yen as soon as they are received.The spot rate on June 1 was $1 = ¥240,and the 90-day forward rate was $1 = ¥234.At what amount would CamCo record the Forward Contract on June 1? A) $2,083. B) $0. C) $2,110. D) $2,532. E) $2,137.
-On June 1,CamCo received a contract to sell inventory for ¥500,000.The sale would take place in 90 days.CamCo immediately signed a 90-day forward contract to sell the yen as soon as they are received.The spot rate on June 1 was $1 = ¥240,and the 90-day forward rate was $1 = ¥234.At what amount would CamCo record the Forward Contract on June 1?


A) $2,083.
B) $0.
C) $2,110.
D) $2,532.
E) $2,137.

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