Question: CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 3 Tries remaining: Marked out of 16.67 Flag question Reported gain or loss on hedging transaction On September

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 3 Tries remaining: Marked

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 3 Tries remaining: Marked out of 16.67 Flag question Reported gain or loss on hedging transaction On September 30, we enter into a futures contract to hedge the value of gold which we use on our manufacturing process and report on our balance sheet at $800,000. On December 31, the market value of gold had declined to $720,000. However, the futures contact that we had purchased increased in value by $72,000. Do not use negative signs with your answers. a. How much net profit or loss will be recognized? $ 0 b. Will this profit or loss be reflected in net income or other comprehensive income? Check Save Answers Previous page Next page

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