(A) Assume This Hedge Is Designated as a Fair Value

question 90

Essay

(A.) Assume this hedge is designated as a fair value hedge.Prepare the journal entries relating to the transaction and the forward contract.
(B.) Compute the effect on 2018 net income.
(C.) Compute the effect on 2019 net income.

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Definitions:

Molecular Biologists

Scientists who study the structure, function, and regulation of biomolecules that influence the cellular processes and conditions of living organisms.

Native Organisms

These are species that originated in and are naturally occurring in a specific geographical area, as opposed to those that have been introduced from other areas.

Nonnative Organism

A species living outside its natural distribution area, having been introduced by human activity, either intentionally or accidentally.

Extinct Annually

The phenomenon where species of animals, plants, or other organisms disappear from the planet every year due to environmental factors, human activity, or other causes.