Trojan Corporation USA borrowed 1,000,000 New Zealand dollars (NZ$) at the beginning of the calendar year when the exchange rate was account bulk chocolate from a Swiss supplier for 166,667 Swiss francs (CHF) when the spot rate is $0.90 = CHF 1. The Swiss franc payable is due on September 1. To minimize its expo- sure to an exchange loss should the franc appreciate relative to the dollar prior to pay- ment, ACL International acquires a forward contract to exchange $103,334 for francs on September 1 at a forward rate of $0.92 = CHF 1. Required: Given the following exchange rate information, provide journal entries to account for the forward exchange contract on June 1, June 30, and September 1. The company closes its books quarterly. $0.60 = NZ$1. Before repaying this one-year loan, Trojan learns that the NZ dollar has appreciated to $0.70 = NZ$1. It discovers, also, that its New Zealand subsidiary has an exposed net asset position of NZ$ 3,000,000, which will produce a translation gain upon consolidation. What is the amount of the exchange gain or loss that will be reported in consolidated income if: the U.S. dollar is the foreign operation’s functional currency? the New Zealand dollar is the foreign operation’s functional currency and Trojan Corporation. designates the New Zealand dollar borrowing as a hedge of the New Zealand affiliate’s positive exposure?
This question was answered on: Oct 15, 2019Buy this answer for only: $15
This attachment is locked
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Oct 15, 2019EXPERT
YES, THIS IS LEGAL
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.