Assuming a Forward Contract Was Entered into on December 16

question 38

Multiple Choice

Assuming a forward contract was entered into on December 16, what would be the net impact on Car Corp.'s 2018 income statement related to this transaction? Assume an annual interest rate of 12% and a fair value hedge.The present value for one half-month at 12% is .9950.

• A) $ 700 (gain).
• B) $ 700 (loss).
• C) $ 995 (gain).
• D) $ 300 (loss).
• E) $ 298 (gain).

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A focus or approach that prioritizes building and maintaining positive relationships among individuals or groups.

High-Control

Refers to a management style or organizational structure where decision-making and authority are centralized, and strict regulations guide operations and processes.

Assertive

The quality of being self-assured and confident without being aggressive, enabling clear and effective communication.

Directive

An authoritative instruction or guideline that directs the way tasks or operations should be carried out.