Spiralling crude oil prices prompted AMAR Company to purchase call options on oil as a price-risk-hedging device to hedge the expected increase in prices on an anticipated purchase of oil.On November 30,20X8,AMAR purchases call options for 20,000 barrels of oil at $100 per barrel at a premium of $4 per barrel,with a February 1,20X9,call date.The following is the pricing information for the term of the call:
The information for the change in the fair value of the options follows:
On February 1,20X9,AMAR sells the options at their value on that date and acquires 20,000 barrels of oil at the spot price.On April 1,20X9,AMAR sells the oil for $112 per barrel.
-Based on the preceding information,which of the following adjusting entries would be required on December 31,20X8?
Definitions:
Types Of Meetings
Various formats or categories of gatherings in a professional setting, each designed for specific outcomes, such as brainstorming, strategy sessions, or status updates.
Renal Papilla
The tip of the renal pyramid in the kidney, where urine is funneled into the ureter.
Major Calyx
A structure in the kidney that collects urine from the minor calyx before it moves to the renal pelvis and into the ureter.
Minor Calyx
A structure in the kidneys that collects urine from the nephrons and passes it into the major calyx.
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