If Zamfir does not attempt to hedge this transaction, what is the gain or loss that should be shown on the company’s December 31, 20×1 financial statements?
A. $22,000 loss
B. $21,450 loss
C. $8,000 gain
D. $7,800 gain
Answer:A
If Zamfir does not attempt to hedge this transaction, what is the gain or loss that should be shown on the company’s December 31, 20×1 financial statements?
A. $22,000 loss B. $21,450 loss C. $8,000 gain D. $7,800 gain