10 Indicate the amount(s) reported on the balance sheet and income statement related to the fuel oil inventory and the put option onNovember 30, 2025. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)OIL PRODUCTS COMPANYBalance Sheet (Partial)For the Month Ended November 30, 2025OIL PRODUCTS COMPANYIncome Statement (Partial)tA$$ On October 15, 2025, Oil Products Co. purchased 4,000 barrels of fuel oil with a cost of $240,000 ($60 per barrel). Oil Products isholding this inventory in anticipation of the winter 2026 heating season. Oil Products accounts for its inventory at the lower-of-FIFO-cost-or-net realizable value. To hedge against potential declines in the value of the inventory, Oil Products also purchased a put optionon the fuel oil. Oil Products paid an option premium of $300 for the put option, which gives Oil Products the option tosell 4,000 barrels of fuel oil at a strike price of $60 per gallon. The option expires on March 1, 2026. The following data are availablewith respect to the values of the fuel of inventory and the put option.DateOctober 31, 2025November 30, 2025December 31, 2025Market Price of Fuel Oil$58 per gallon57 per gallon54 per gallonTime Value of Put Option$17510540

Income statement:An income statement stands for the statement that shows profits and loss of the…

On October 15, 2025, Oil Products Co. purchased 4,000 barrels of fuel oil with a cost of $240,000 ($60 per barrel). Oil Products is holding this inventory in anticipation of the winter 2026 heating season. Oil Products accounts for its inventory at the lower-of-FIFC cost-or-net realizable value. To hedge against potential declines in the value of the inventory, Oil Products also purchased a put opti on the fuel oil. Oil Products paid an option premium of $300 for the put option, which gives Oil Products the option to sell 4,000 barrels of fuel oil at a strike price of $60 per gallon. The option expires on March 1, 2026. The following data are available with respect to the values of the fuel of inventory and the put option.

On October 15, 2025, Oil Products Co. purchased 4,000 barrels of fuel oil with a cost of $240,000 ($60 per barrel). Oil Products is holding this inventory in anticipation of the winter 2026 heating season. Oil Products accounts for its inventory at the lower-of-FIFC cost-or-net realizable value. To hedge against potential declines in the value of the inventory, Oil Products also purchased a put opti on the fuel oil. Oil Products paid an option premium of $300 for the put option, which gives Oil Products the option to sell 4,000 barrels of fuel oil at a strike price of $60 per gallon. The option expires on March 1, 2026. The following data are available with respect to the values of the fuel of inventory and the put option.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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