On November 1, 20x6, APIC Corporation sold merchandise to Allan Corporation on November 1, 20x6 for U.S. $50,000. Payment will be received on February 1, 20x7. APIC Corporation entered into forward exchange contracts to hedge the transaction on November 1, 20x6. The fiscal year-end for APIC Corporation is December 31. The exchange rates on various dates are as follows: November 1, 20x6 December 31, 20x6 February 1, 20x7 Spot rate 30-day forward rate 60-day forward rate 90-day forward rate P40.00 P40.25 P40.50 40.35 40.40 40.10 40.55 40,20 40.30 40.65 40.45 40.60 1. How much is the ForEx gain or (loss) on December 31, 20x6 with respect to accounts receivable? A. 2,500 C. (2,500)
On November 1, 20x6, APIC Corporation sold merchandise to Allan Corporation on November 1, 20x6 for U.S. $50,000. Payment will be received on February 1, 20x7. APIC Corporation entered into forward exchange contracts to hedge the transaction on November 1, 20x6. The fiscal year-end for APIC Corporation is December 31. The exchange rates on various dates are as follows: November 1, 20x6 December 31, 20x6 February 1, 20x7 Spot rate 30-day forward rate 60-day forward rate 90-day forward rate P40.00 P40.25 P40.50 40.35 40.40 40.10 40.55 40,20 40.30 40.65 40.45 40.60 1. How much is the ForEx gain or (loss) on December 31, 20x6 with respect to accounts receivable? A. 2,500 C. (2,500)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![On November 1, 20x6, APIC Corporation sold merchandise to Allan Corporation on November 1, 20x6 for U.s.
$50,000. Payment will be received on February 1, 20x7. APIC Corporation entered into forward exchange contracts
to hedge the transaction on November 1, 20x6. The fiscal year-end for APIC Corporation is December 31. The
exchange rates on various dates are as follows:
November 1, 20x6
P40.00
December 31, 20x6
February 1, 20x7
P40.50
Spot rate
30-day forward rate
60-day forward rate
90-day forward rate
P40.25
40.10
40.35
40.55
40,20
40.30
40.40
40.65
40.45
40.60
1. How much is the ForEx gain or (loss) on December 31, 20x6 with respect to accounts receivable?
А. 2,500
C. (2,500)
В. 12,500
D. (12,500)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58790ff6-d1e8-4ab2-a06b-e11552101258%2F93c5d000-aa2f-4df8-a202-ab825df6f195%2Fquq827_processed.png&w=3840&q=75)
Transcribed Image Text:On November 1, 20x6, APIC Corporation sold merchandise to Allan Corporation on November 1, 20x6 for U.s.
$50,000. Payment will be received on February 1, 20x7. APIC Corporation entered into forward exchange contracts
to hedge the transaction on November 1, 20x6. The fiscal year-end for APIC Corporation is December 31. The
exchange rates on various dates are as follows:
November 1, 20x6
P40.00
December 31, 20x6
February 1, 20x7
P40.50
Spot rate
30-day forward rate
60-day forward rate
90-day forward rate
P40.25
40.10
40.35
40.55
40,20
40.30
40.40
40.65
40.45
40.60
1. How much is the ForEx gain or (loss) on December 31, 20x6 with respect to accounts receivable?
А. 2,500
C. (2,500)
В. 12,500
D. (12,500)
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