On March 1,20X2,McBride Ltd

question 19

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 cash-flow hedge.What amount should be recognized as other comprehensive income at April 30,20X2?

• A)$ 320
• B)$ 640
• C)$4,640
• D)$5,280

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Definitions:

U.S. Federal Government

The U.S. Federal Government is the national government of the United States, composed of three distinct branches (legislative, executive, and judicial) established to provide national leadership and implement various laws and policies.

Goods and Services

The outputs offered by businesses or the economy at large, including tangible products (goods) and intangible offerings (services).

Double Government

A theory suggesting that national security policy is predominantly shaped and executed by a network of insulated managerial agencies, overshadowing traditional democratic institutions.

Bureaucrats

Government officials and workers who run the day-to-day business of government, often associated with the administrative aspects of governance.