REFERENCE: Ref.09_02 Brisco Bricks Purchases Raw Material from Its Foreign Supplier,Bolivian Clay,on

question 3

Multiple Choice

REFERENCE: Ref.09_02
Brisco Bricks purchases raw material from its foreign supplier,Bolivian Clay,on May 8.Payment of 2,000,000 foreign currency units (FC) is due in 30 days.May 31 is Brisco's fiscal year-end.The pertinent exchange rates were as follows:
-On June 1,CamCo received a contract to sell inventory for ¥500,000.The sale would take place in 90 days.CamCo immediately signed a 90-day forward contract to sell the yen as soon as they are received.The spot rate on June 1 was $1 = ¥240,and the 90-day forward rate was $1 = ¥234.At what amount would CamCo record the Forward Contract on June 1?

• A)$2,083.
• B)$0.
• C)$2,110.
• D)$2,532.
• E)$2,137.

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Definitions:

Organogenesis

The phase of embryonic development in which the organs of the body are formed, occurring after gastrulation.

Trimester

A term divided into three parts, often used to describe the three roughly three-month periods into which pregnancy is divided.

Toxic Chemicals

Substances that are harmful or deadly to living organisms when introduced into the environment or the body, often through pollution or contamination.

Liver Damage

Harm to the liver, often resulting from conditions like hepatitis, alcohol misuse, or drug toxicity, impacting its ability to function properly.