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On January 1, 20X4, Branson Company, a U

Question 37

Essay

On January 1, 20X4, Branson Company, a U.S. corporation, purchased lab equipment from a Japanese vendor for 1,000,000 FC. The 1,000,000 FC is to be paid on March 31, 20X4. On February 1 the company purchased a forward contract to buy foreign currency which would expire on March 31, 20X4. The contract was to purchase 1,000,000 FC.
Exchange Rates are as follows:
On January 1, 20X4, Branson Company, a U.S. corporation, purchased lab equipment from a Japanese vendor for 1,000,000 FC. The 1,000,000 FC is to be paid on March 31, 20X4. On February 1 the company purchased a forward contract to buy foreign currency which would expire on March 31, 20X4. The contract was to purchase 1,000,000 FC. Exchange Rates are as follows: Discount rate = 15% Required: Prepare the entries to record the transactions. Discount rate = 15%
Required:
Prepare the entries to record the transactions.

Correct Answer:

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