any purchases 80,000 US dollars under a forward contract dated November 1, 2020, for delivery on January 31, 2021. The following are the direct exchange rates of a US dollar: 11/01/2020 12/31/2020 01/31/2021 Spot rates 45.75 44.90 44.50 30-day forward 44.30 46.15 43.20 60-day forward 47.65 44.30 45.75 90-day forward 45.25 45.45 44.10 If the forward contract is a hedge of an import transaction of $80,000 dated November 1, 2020, payable on January 31, 2021, how much forex gain should the company report on its December 31, 2020 statement of comprehensive income?
D Company purchases 80,000 US dollars under a forward contract dated November 1, 2020, for delivery on January 31, 2021. The following are the direct exchange rates of a US dollar:
11/01/2020 12/31/2020 01/31/2021
Spot rates 45.75 44.90 44.50
30-day forward 44.30 46.15 43.20
60-day forward 47.65 44.30 45.75
90-day forward 45.25 45.45 44.10
If the forward contract is a hedge of an import transaction of $80,000 dated November 1, 2020, payable on January 31, 2021, how much forex gain should the company report on its December 31, 2020 statement of comprehensive income?
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