Business, 16.08.2021 22:30, theamandawhite

On December 15, 20X6, MMM Co. ordered €325,000 of inventory from a supplier in France. The goods are scheduled to be delivered on January 15, 20X7, and payment in full is due at that time. MMM immediately entered into a forward rate agreement to purchase €325,000 of inventory on the scheduled delivery date. The inventory was received and payment made on January 15. MMM’s year end is December 31. Exchange rate information follows: Date Spot rate Forward rate for delivery on January 15, 20X7 December 15, 20X6 €1 = C$1.40 €1 = C$1.3925 December 31, 20X6 €1 = C$1.38 €1 = C$1.3775 January 15, 20X7 €1 = C$1.35 €1 = C$1.3500 MMM elects to use hedge accounting to account for the fair value hedge. What is the amount of net foreign exchange gain or loss to be reported on the SCI for the period ended December 31, 20X6? a) $4,875 loss
b) $0
c) $1,625 gain
d) $4,875 gain

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On December 15, 20X6, MMM Co. ordered €325,000 of inventory from a supplier in France. The goods are...