On March 1,20X2,McBride Ltd

question 12

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 is the cost of the hedge?

• A)$ 1,800
• B)$ 2,200
• C)$ 4,960
• D)$12,360

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Definitions:

Urban

Relating to, characteristic of, or situated in a city or town.

Governmental Planning

The process by which governmental bodies set goals, establish priorities, and develop strategies to achieve desired outcomes for communities or nations.

Bootstrapping

refers to starting a business with minimal financial resources, relying on personal income and savings rather than seeking external investment.

Resource Acquisition

The process of identifying, securing, and managing the assets and inputs required for business operations and growth.