On December 1 20X1 Sycamore Company acquired a 90 day speculative
On December 1, 20X1, Sycamore Company acquired a 90-day speculative forward contract to sell €120,000 at a forward rate of €1 = $0.58. The rates are as follows:



Required
a. Prepare a schedule showing the effects of this speculation on 20X1 income before income taxes.
b. Prepare a schedule showing the effects of this speculation on 20X2 income before incometaxes.
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