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:

Binge Eating

Involves consuming large quantities of food in a short period, often accompanied by a sense of lack of control over eating.

Sorority Sisters

Female members of a sorority, a social organization at colleges or universities, who often refer to each other as sisters due to the close bonds formed.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Social Facilitation

The tendency for individuals to perform differently when in the presence of others, typically improving on simple or well-rehearsed tasks and performing poorly on complex tasks.