St. Philip Company ordered parts costing €250,000 from a foreign supplier on January 15 when the spot rate was $0.28 per €. A one-month forward contract was signed on that date to purchase €250,000 at a forward rate of $0.30. The forward contract is properly designated as a fair value hedge of the €250,000 firm commitment. On February 15, when the company receives the parts, the spot rate is $0.29. At what amount should St. Philip Company carry the parts inventory on its books?
a. $75,000
b. $70,000
c. $71,500
d. $72,500
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “St. Philip Company ordered parts costing €250,000 from a foreign supplier on January 15 when the spot rate was $0.28 per €. A one-month ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
After an intensive research and development effort, two methods for producing playing cards have been identified by the Turner Company. One method involves using a machine having a fixed cost of $10,000 and variable costs of $1.00 per deck of cards.
Answers (1)
1. An 80%-owned subsidiary sells land to its parent at a gain of $100,000. The following year, the parent sells the land to an outside entity for a gain of $10,000.
Answers (1)
Gerard, an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of services that he will probably never need.
Answers (1)
The Average Product of Labor is Question 17 options: A) the ratio of output to the number of workers used to produce that output. B) the amount of output that can be produced by a given amount of labor.
Answers (1)
Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expected to be $4,000.
Answers (1)
New Questions in Business
Dispatch Hauling Corporation has an online forum where employees can post comments. Eddie posts a racially offensive video on the forum. Dispatch should
Answers (1)
As the operations manager for American Airlines you have decided to invest in 10 new jets for the company's fleet. There are three outcomes for this investment.
Answers (1)
A neighborhood recreation program serves a total of 280 children who are either 11 years old or 12 years old. the sum of the children's ages is 3,238 years. how many 11-year-old children does the recreation program serve?
Answers (2)
Behavioral science relies on data from past sales to forecast human behavior to develop strategic plans and goals
Answers (1)
Destin Industries received a $60,000 check from one of its customers, deposited it into its bank account, and recorded it in its bank register. The funds were reflected in Destin's bank account two days later.
Answers (1)