St. Philip Company ordered parts costing 250,000 from a foreign supplier on January 15 when...
70.2K
Verified Solution
Link Copied!
Question
Accounting
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? Multiple Choice $75,000 $70,000 $71,500 $72,500
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
