Question 130/0.5 ptsOn September 1, 2018, Bauer Inc. has 10,000 ounces of silver, with an average cost of $13 per ounce, in inventory. Thespot price for silver is $16 per ounce. Bauer decides to retain the inventory until mid-January 2019, hoping that theprice increases to $17 per ounce. To hedge its position, Bauer sells future contracts to sell 10,000 ounces of silver at $17per ounce on January 20, 2019. The firm applies fair value hedge accounting. The market spot rates and future prices forsilver are as follows:January 20Spot Price2019 FuturePriceSeptember 1,$ 16$ 172018December31, 2018January 20,2019$14.50$15.50$ 16.80$ 16.80What is the carrying value of Bauer's inventory of silver on 12/31/2018?HINT: Record the initial value of the inventory and then any adjustments due to hedge accounting journal entries.$130,000nswer$115,000$105,000$145,000weredNone of the above.

The objective of the question is to calculate the carrying value of Bauer's inventory of silver on…

Answered: Question 13 0/0.5 pts On September 1,…

Cornerstones of Financial Accounting

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ISBN:9781337690881

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Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

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Problem 16E

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Current Attempt in Progress Sheridan.com sells 6700 units of its product for $490 each. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $60 per unit. In the year of sale, warranty contracts are honored on 140 units for a total cost of $8400. What amount should Sheridan.com accrue on December 31 for estimated warranty costs? $8400 O $72360 O $3660 O $12060
Solve for the cash remittance
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