Use the Following Information for Questions

question 67

Short Answer

Use the following information for questions.
On August 25, 2017, Beta Inc.entered into a forward contract to buy 50,000 Krubles (KRB)for $8,300 Canadian (CAD)on September 5, 2017.On August 31, 2017, 50,000 KRB can be purchased for $8,000 CAD.On September 5, Beta settles the contract but does NOT take delivery of the KRB.
-The entry to record the change in value of the contract on August 31, 2017 is

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Definitions:

Indirect Exporting

A method of entering foreign markets by selling products to intermediaries, who in turn sell them to customers in the target market, rather than direct exporting.

Harley-Davidson

An iconic American motorcycle manufacturer known for its heavyweight motorcycles and distinctive brand culture.

Foreign Assembly

The practice of assembling products in a country different from where the components were manufactured, often to save labor costs or avoid import tariffs.

Licensing

involves granting a legally protected right under a trademark, patent, or copyright to use, manufacture, or sell a product.