Levin Company Entered into a Forward Contract to Speculate in the Foreign

question 6

Multiple Choice

Levin company entered into a forward contract to speculate in the foreign currency. It sold 100,000 foreign currency units under a contract dated November 1, 20X8, for delivery on January 31, 20X9: In its income statement for the year ended December 31, 20X8, what amount of loss should Levin report from this forward contract?

• A) $0
• B) $300
• C) $200
• D) $100

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Definitions:

Weber

Refers to Max Weber, a German sociologist, who is known for his theory on the bureaucratic management structure and the concept of rationalization.

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A trait found in individuals who possess a compelling attractiveness or charm that can inspire devotion in others.

Formal Authority

Power granted to an individual or organization based on their position within the hierarchical structure of an organization.

Positive Charismatic

Refers to individuals who possess an inspiring, optimistic, and compelling charm that influences others positively.