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Larson, Inc

Question 61

Multiple Choice

Larson, Inc. sold merchandise for 600,000 FC to a foreign vendor on November 30, 20X5. Payment in foreign currency is due January 31, 20X6. On the same day, Larson signed an agreement with a foreign exchange broker to sell 600,000 FC on January 31, 20X6. Exchange rates to purchase 1 FC are as follows: Larson, Inc. sold merchandise for 600,000 FC to a foreign vendor on November 30, 20X5. Payment in foreign currency is due January 31, 20X6. On the same day, Larson signed an agreement with a foreign exchange broker to sell 600,000 FC on January 31, 20X6. Exchange rates to purchase 1 FC are as follows: What will be the recorded amount of the Forward Contract on November 30, 20X5? A) $894,000 B) $888,000 C) $882,000 D) $0 What will be the recorded amount of the Forward Contract on November 30, 20X5?


A) $894,000
B) $888,000
C) $882,000
D) $0

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