On May 1, 2013, Mosby Company Received an Order to Sell

question 89

Multiple Choice

On May 1, 2013, Mosby Company received an order to sell a machine to a customer in Canada at a price of 2,000,000 Mexican pesos. The machine was shipped and payment was received on March 1, 2014. On May 1, 2013, Mosby purchased a put option giving it the right to sell 2,000,000 pesos on March 1, 2014 at a price of $190,000. Mosby properly designates the option as a fair value hedge of the peso firm commitment. The option cost $3,000 and had a fair value of $3,200 on December 31, 2013. The following spot exchange rates apply: $\begin{array}{|l|c|}\hline \text { Date } & \text { Spot Rate } \\\hline \text { May 1,2013 } & \$ 0.095 \\\hline \text { December 31,2013 } & \$ 0.094 \\\hline \text { March 1,2014 } & \$ 0.089 \\\hline\end{array}$ Mosby's incremental borrowing rate is 12 percent, and the present value factor for two months at a 12 percent annual rate is .9803. What was the impact on Mosby's 2014 net income as a result of this fair value hedge of a firm commitment?

• A)$1,800.00 decrease.
• B)$2,500.00 increase.
• C)$2,500.00 decrease.
• D)$188,760.60 increase.
• E)$188,760.60 decrease.

Understand the underlying causes, including genetic and neurotransmitter-related, of specific disorders like schizophrenia and depression.

Appreciate the significance of the biopsychosocial model in explaining the etiology of mental disorders.

Recognize the role of cognitive processes, such as rumination, in psychological disorders.

Understand the impact of genetic, physiological, psychological, and social influences on mental disorders.

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Definitions:

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations, experiences, and context.

Feature Analysis

A method in cognitive psychology for understanding how the human mind perceives and processes information by breaking down stimuli into component features.

Attentional Disturbance

A disruption or impairment in the ability to focus, maintain, or shift attention effectively.

Gestalt Psychology

An approach to psychology that emphasizes understanding the whole experience rather than its parts, particularly in perception.