Use the Following Information for Questions

question 59

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.
-On September 5, 2017, the KRB is trading at $0.17 CAD.The entry to record the settlement of the contract is

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Definitions:

Nemerteans

A phylum of invertebrate animals also known as ribbon worms, which are known for their elongated bodies and proboscis used for feeding and defense.

Phoronids

A small phylum of marine animals that live in tubular structures and filter feed, known for their horseshoe-shaped lophophore.

Gastropods

A large class of mollusks that includes snails and slugs, characterized by a univalve shell or the absence of a shell.

Leeches

Parasitic or predatory worms belonging to the phylum Annelida and known for their use in medicine, especially for bloodletting.