Use the following information to answer the question(s) below.
On December 1,2011,Thomas Company,a U.S.corporation,purchases inventory from a vendor in Italy for 400,000 euros.Payment is due in 90 days.To hedge the transaction,Thomas signs a forward contract to buy 400,000 euros in 90 days at $1.3670.Thomas uses a discount rate of 6% (present value factor for 30 days = .9950;60 days = .9901;90 days = .9851) .Assume the forward contract will be settled net and this is a cash flow hedge.Currency exchange rates are shown below:
-What is the fair value of the forward contract at December 31,2011?
Definitions:
Jews
An ethnoreligious group originating from the Israelites or Hebrews of the ancient Near East, adhering to Judaism.
Diamond Necklace Affair
A scandal in 18th-century France involving a fraudulent transaction of an expensive diamond necklace, which tarnished the reputation of Queen Marie Antoinette.
Cardinal
A senior ecclesiastical leader, appointed by the Pope, and typically in charge of overseeing a particular department of the Catholic Church's administration.
Queen Marie-Antoinette
The last Queen of France before the French Revolution, known for her extravagant lifestyle and executed by guillotine in 1793.
Q7: The partnership of May,Novem,and Octo was dissolved.By
Q13: What goodwill will be recorded?<br>A)$ 80,000<br>B)$240,000<br>C)$320,000<br>D)$400,000
Q15: Required:<br>1.Prepare a schedule to allocate income to
Q22: When mutually-held stock involves subsidiaries holding the
Q26: The gain from the bond purchase that
Q27: What is the amount of total assets?<br>A)$1,380,000<br>B)$1,402,000<br>C)$1,470,000<br>D)$1,875,000
Q33: Padma Corporation owns 70% of the outstanding
Q35: Pheasant Corporation owns 80% of Sal Corporation's
Q37: Johnson Corporation (a U.S.company)began operations on December
Q38: Pascal Corporation paid $225,000 for a 70%