On May 1,2024, Mosby Company received an order to sell a machine to a customer...
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On May Mosby Company received an order to sell a machine to a customer in Canada at a price of Mexican pesos. The machine was shipped, and payment was received on March On May Mosby purchased a put option giving it the right to sell pesos on March at a price of $ Mosby properly designates the option as a fair value hedge of the peso firm commitment. The option cost $ and had a fair value of $ on December The following spot exchange rates apply:DateSpot RateMay $ December $ March $ What was the impact on Mosby's net income as a result of this fair value hedge of a firm commitment?Group of answer choices$ decrease$ decrease$ decrease$ increase$ increase
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