Hizon Holdings Inc. a parent company of a group of companies, but also does its own trading. It bought a fixed assets for $36,000 on November 1, 2019 when the exchange rate was $1 = P23. At December 31, 2019, the company's year-end, the supplier of the fixed asset has not been paid and the exchange rate at that time was $1.00 = P25. The company has not taken out forward exchange contract for this payment as a hedge against adverse exchange rate movements. On the balance sheet date of HIzon Holdings Inc, what will be the values for the fixed assets and the creditor who was unpaid? Group of answer choices a. Fixed Asset - P828,000; Creditor - P900,000 b. Fixed asset - P900,000; Creditor - P900,000 c. Fixed asset - P828,000; Creditor - P828,000 d. Fixed asset - P900,000; Creditor - P828,000
Hizon Holdings Inc. a parent company of a group of companies, but also does its own trading. It bought a fixed assets for $36,000 on November 1, 2019 when the exchange rate was $1 = P23. At December 31, 2019, the company's year-end, the supplier of the fixed asset has not been paid and the exchange rate at that time was $1.00 = P25. The company has not taken out forward exchange contract for this payment as a hedge against adverse exchange rate movements. On the balance sheet date of HIzon Holdings Inc, what will be the values for the fixed assets and the creditor who was unpaid?
Group of answer choices
a. Fixed Asset - P828,000; Creditor - P900,000
b. Fixed asset - P900,000; Creditor - P900,000
c. Fixed asset - P828,000; Creditor - P828,000
d. Fixed asset - P900,000; Creditor - P828,000
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