Question: On September 3 0 , we enter into a futures contract to hedge the value of gold which we use on our manufacturing process and

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 $900,000. On December 31, the market value of gold had declined to $810,000. However, the futures contact that we had purchased increased in value by $81,000.
Do not use negative signs with your answers.
a. How much net profit or loss will be recognized?
$Answer 1 Answer 2Net profitNet loss
b. Will this profit or loss be reflected in net income or other comprehensive income?

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