Questions from Advanced Accounting

Q: What was the net impact on Stone Company’s 2021 income as a

What was the net impact on Stone Company’s 2021 income as a result of this fair value hedge of a firm commitment and export sale? a. $–0–. b. $1,300 decrease in income c. $78,000 increase in income d....

Q: What is the net impact on Munchkin’s net income for the quarter

What is the net impact on Munchkin’s net income for the quarter ended June 30, 2020, as a result of this forward contract hedge of a firm commitment? a. $–0– b. $2,400 increase in net income c. $4,000...

Q: What is the net impact on Munchkin’s net income for the quarter

What is the net impact on Munchkin’s net income for the quarter ended September 30, 2020, as a result of this forward contract hedge of a firm commitment and export sale? a. $–0– b. $115,000 increase...

Q: On January 1, 2021, Acme Co. is considering purchasing

On January 1, 2021, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2021, projects...

Q: What is the net impact on Good Life Company’s 2020 net income

What is the net impact on Good Life Company’s 2020 net income as a result of this hedge of a forecasted foreign currency transaction? a. $–0– b. $400 decrease in net income c. $1,000 decrease in net i...

Q: What is the net impact on Good Life Company’s 2021 net income

What is the net impact on Good Life Company’s 2021 net income as a result of this hedge of a forecasted foreign currency transaction and import purchase? Assume that the raw materials are consumed and...

Q: Bento Corporation (a U.S.-based company) acquired

Bento Corporation (a U.S.-based company) acquired merchandise on account from a foreign supplier on November 1, 2020, for 100,000 crowns. It paid the foreign currency account payable on January 15, 20...

Q: On December 20, 2020, Momeier Company (a U.

On December 20, 2020, Momeier Company (a U.S.-based company) sold parts to a foreign customer at a price of 50,000 rials. Payment is received on January 10, 2021. Currency exchange rates are as follow...

Q: On December 15, 2020, Lisbeth Inc. (a U

On December 15, 2020, Lisbeth Inc. (a U.S.-based company) purchases merchandise inventory from a foreign supplier for 50,000 schillings. Lisbeth agrees to pay in 45 days, after it sells the merchandis...

Q: Voltac Corporation (a U.S.-based company) has

Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: Currency exchange rates for 1 peso for 2020 are as follows: For each of the...