date were $ 8,000 and $ 10,000 , respectively . What amount should Hall use to determine gain or loss on redemption ?
Question 19
For accounting purposes , which one of the following circumstances would not be considered the transfer of a financial asset ?
Question 20
Gains and Losses from changes in the fair value of a derivative designated and qualified as a fair value hedge should be :
Question 1
A U . S . entity is concerned that changing exchange rates will result in a loss on a foreign currency to be received in the future . To hedge the risk of possible loss , the entity should acquire a forward contract to
Question 2
During 2005 both Raim Co . and Cane Co . suffered losses due to the flooding of the Mississippi River . Raim is located two miles from the river and sustains flood losses every two to three years . Cane , which has been located fifty miles from the river for the past twenty years , has never before had flood losses . How should the flood losses be reported in each company ' s 2005 income statement ?
Question 3
On September 1 , 2008 , Bain Corp . received an order for equipment from a foreign customer for 300,000 local currency units ( LCU ) when the U . S . dollar equivalent was $ 96,000 . Bain shipped the equipment on October 15 , 2008 , and billed the customer for 300,000 LCU when the U . S . dollar equivalent was $ 100,000 . Bain received the customer ' s remittance in full on November 16 , 2008 , and sold the 300,000 LCU for $ 105,000 . In its income statement for the year ended December 31 , 2008 , Bain should report a foreign exchange gain of :