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Lawrence company ordered parts costing FC100,000 from a foreign supplier on May 12 when the spot rate was .20 per FC. A one-month forward contract was signed on that date to purchase FC 100,000 at a forward rate of .21. The forward contract is properly designated as a fair value hedge of the FC100,000 firm commitment. On June 12, when the company receieves the parts, the spot rate is .23. At what amount should Lawrence Company carry the parts inventory on its books?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9435076

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