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On March 1,20X2,McBride Ltd

question 41

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On March 1,20X2,McBride Ltd.issued a purchase order to Tao Heavy Machines (Singapore) Inc.to acquire a drilling machine for $400,000 SGD.On the same day,McBride entered into a forward contract to receive $400,000 SGD on July 31,20X2.The machine was delivered on June 1,20X2 and payment was made July 31,20X2.McBride has an April 30 year-end.The following information has been provided:
On March 1,20X2,McBride Ltd.issued a purchase order to Tao Heavy Machines (Singapore) Inc.to acquire a drilling machine for $400,000 SGD.On the same day,McBride entered into a forward contract to receive $400,000 SGD on July 31,20X2.The machine was delivered on June 1,20X2 and payment was made July 31,20X2.McBride has an April 30 year-end.The following information has been provided:   Assume that the transaction qualifies as a fair-value hedge.At what amount should McBride record the drilling machine? A) $307,440 B) $312,400 C) $317,600 D) $319,800
Assume that the transaction qualifies as a fair-value hedge.At what amount should McBride record the drilling machine?

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Definitions:

Phillis Wheatley

The first African American woman to publish a book of poetry, hailing from the 18th century, recognized for her literary contributions despite being enslaved.

Poetry

A form of literature utilizing aesthetic and rhythmic qualities of language to evoke meanings beyond prose's literal interpretation.

White Virginians

Refers to the Caucasian inhabitants of Virginia, especially significant in historical contexts relating to their roles in the colonial, antebellum, and Civil War periods of the United States.

Racial Slavery

The practice of enslavement based primarily on race, notably the African slave trade by Europeans and the enslavement of Africans and their descendants in the Americas.

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