On November 1, 2017, National Company sold inventory to a foreign customer. The account will be settled on March 1 with the receipt of 200,000 foreign currency units (FCU). On November 1, National also entered into a forward contract to hedge the exposed asset. The forward rate is $0.80 per unit of foreign currency. National has a December 31 fiscal year-end. Spot rates on relevant dates were:

$162,000 and $4,000 loss

Explanation:

The computation of the adjusted basis in the account receivable and the gain or loss is as follows:

As on Nov 1, the foreign currency rate on date of sale is $0.83

The account receivable should be recorded at

= 200,000 × $0.83

= $166,000

Now the foreign currency rate is reduced to $0.81

So the loss is recorded

= ($0.83 - $0.81) × $2,00,000

= $4,000 loss

And, Receivable balance on Dec 31 is

= $166,000 - $4,000

= $162,000

b

explanation:

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%