On March 1,20X2,McBride Ltd

question 10

Multiple Choice

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.What is the cost of the hedge?

• A)$2,200
• B)$4,640
• C)$4,960
• D)$6,680

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Definitions:

Crisis Leadership

The ability to effectively manage and lead during times of extreme challenge, uncertainty, or threat.

Proper Planning

The process of defining objectives, developing strategies, and outlining tasks and schedules to achieve the goals set.

Calm and Stable

Describing a situation, environment, or personality that is characterized by tranquility, predictability, and low volatility.

Normative Decision Model

A leadership theory that provides a framework to determine the best leadership style based on the situational context and decision-making involvement of leaders and followers.