User Account

All Pages

What amount(s) does derby report in net income

Assignment Help Accounting Basics
Reference no: EM133178665

Question - On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.28 per Norwegian krone, Derby enters into a forward contract to purchase 617,500 Norwegian kroner at a three-month forward rate of $0.290. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.286 per Norwegian krone, Derby orders and receives the merchandise, paying 617,500 kroner. The merchandise is sold within 30 days. What amount(s) does Derby report in net income as a result of this cash flow hedge of a forecasted transaction and the related purchase and sale of merchandise?

Reference no: EM133178665

Questions Cloud

What is the impact you would like to have : If you want to be more relevant to a community you already engage, there are few questions you should ask yourself. asnwering these questions will help you figu
HR Application-HR-related challenges : What assumptions are you making regarding actions you would take to correct HR-related challenges?
What is the company cm ratio : What is the company's CM ratio? If the company can sell more units thereby increasing sales by $96,000 per month and there is no change in fixed expenses
What are the investors alternatives to this act : In January, the company issued $11 billion in long-term bonds to investors at par value. What are the investors alternatives to this act
What amount(s) does derby report in net income : What amount(s) does Derby report in net income as a result of this cash flow hedge of a forecasted transaction and the related purchase and sale of merchandise
Review the marketing strategies used by the organisation : Explain how the identified digital channel is relevant to the consumers and Describe how the marketing strategy addresses the innate needs of consumers
Prepare journal entries to record the machine purchase : Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred
What are the various methods that can be used : What are the various methods that can be used to analyze distribution costs? Why is it important for the controller to keep track of distribution costs
Explain the training and development programs : Prepare a Taining and Development Plan for the chosen position marketing department, providing an analysis of each type of training selected, as outlined in the

Reviews

Write a Review

Accounting Basics Questions & Answers

  Can Tom disclose to Alice the problems at Anchovy

Big CPA Firm has many partners in one of its local offices. Can Tom disclose to Alice the problems at Anchovy

  how much should Icefrog Company report

Icefrog Company measures its investment at amortized cost. In its December 31, 2023 profit or loss, how much should Icefrog Company report

  How could the company have reduced the costs

Outline the costs that the company now faces as a result of the accident. How could the company have reduced the costs associated with the accident

  Discussing potential reasons for any variances and areas

To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager.

  A lease agreement calls for quarterly lease payments of

a lease agreement calls for quarterly lease payments of 5600 over a 15-year lease term with the first payment at july 1

  How would you assess such transactions in an analysis

Do you believe these companies should be allowed to recognize revenue in conjunction with the advertising agreements described above?

  Describe two internal control procedures

The employee thus generated pay for 16 hours per day, one-half at overtime rates. Describe two internal control procedures

  What would happen to the value of kay stock

What would happen to the value of Kay stock on the ex-dividend date of the one-time dividend? Which selection

  How bad debts can be minimised by managing a well-documented

List at least 3 points that are correct practice to identify, investigate and rectify if you receive incorrect invoice from your supplier.

  What income is reported

Assuming that Oriole elects to use the carryforward provision and not the carryback provision, what income (loss) is reported in 2021

  Cunningham inc sells mp3 players for 60 each variable

cunningham inc. sells mp3 players for 60 each. variable costs are 40 per unit and fixed costs total 60000. how many mp3

  What amount of credit is she entitled to claim

Assuming she otherwise qualifies, which education credit best benefits Amy and what amount of credit is she entitled to claim

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd