Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 30,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Icebreaker enters into a forward contract to purchase 30,000 dinars on March 1, 2021. Relevant exchange rates for the dinar on various dates are as follows: DateSpot RateForward Rate (to March 1, 2021) December 1, 2020$4.80 $4.875 December 31, 2020 4.90 5.000 March 1, 2021 5.05 N/Aa-2. What is the impact on 2020 net income?

Sagot :

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.