Barnes Company Entered into a Forward Contract During the Current

question 32

Multiple Choice

Barnes Company entered into a forward contract during the current year to hedge the risk of a material supply cost increase.Based on the current market,at year-end the present value of the estimated amount they will have to pay in ten months is $750,000.What entry would be recorded at year-end closing,assuming that no amount was recorded for this contract until this time?

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Definitions:

Bandwidth

The maximum rate of data transfer across a given path or internet connection, measured in bits per second (bps).

Signal Decreases

A decrease in the strength or quality of a transmitted signal over distance or due to interference.

Range Extender

A device that amplifies the wireless signal from a router to expand its coverage area, improving the signal quality in distant or hard-to-reach areas within the network coverage.

Network Adapters

Hardware devices that enable a computer to communicate over a network with other computers or devices.