Woolsey Corporation, a U

question 75

Multiple Choice

Woolsey Corporation, a U.S. company, expects to sell goods to a British customer at a price of 250,000 pounds, with delivery and payment to be made on October 24. On July 24, Woolsey purchased a three-month put option for 250,000 British pounds and designated this option as a cash flow hedge of a forecasted foreign currency transaction expected to be completed in late October. The following exchange rates apply:

What amount will Woolsey include as Adjustment to Net Income for the period ended October 31?

• A) $6,000 positive.
• B) $6,000 negative.
• C) $10,000 positive.
• D) $10,000 negative.
• E) $14,000 positive.

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Definitions:

Social Mobility

Shift of individuals, households, or groups across various positions within a societal hierarchy or class system.

Socioeconomic Status

An indicator of a person's or household's place within societal and economic rankings, determined by factors such as income, level of education, and job type.

Life Chances

In sociology, "life chances" refers to the opportunities each individual has to improve their quality of life, based on various socioeconomic factors.

Welfare Reform Act

Legislation aimed at changing the operation of the welfare system, typically to reduce dependency on government assistance by encouraging employment and self-sufficiency.