Question: On October 2, 2011, Asser Tamayo, Inc. ordered a custom built passenger van from a Japanese firm. The purchase order is non-cancellable. The purchase price

On October 2, 2011, Asser Tamayo, Inc. ordered a custom built passenger van from a Japanese firm. The purchase order is non-cancellable. The purchase price is 1,000,000 yens with delivery and payment to be on March 31, 2012. On October 2, 2011, Asser Tamayo, Inc. entered into a forward contract to buy 1,000,000 yens on March 31, 2012, for P0.57. On March 31, 2012, the custom-built passenger van was delivered 10/2/11 12/31/11 3/31/12 Spot rate P 0.50 P 0.56 P 0.57 Forward Rate 0.53 0.58 0.57 The December 31, 2011 profit and loss statement, net foreign exchange gain or loss (forward contract and commitment): The firm commitment account balance as shown in the December 31, 2011 balance sheet amounted to: What is the fair value of the forward contract on December 31, 2011? What is the fair value of the forward contract on March 31, 2012? The firm commitment account balance on March 31, 2012 amounted to? the value of the equipment on March 31, 2012 amounted to?

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