Curtis purchased inventory on December 1, 2020. Payment of 2…

Curtis purchased inventory on December 1, 2020. Payment of 250,000 stickles was to be made in sixty days. Also on December 1, Curtis signed a contract to purchase §250,000 in sixty days. The spot rate was §1 = 0.33682, and the 60-day forward rate was §1 = $0.36842. On December 31, the spot rate was §1 = 0.32438 and the 30-day forward rate was §1 = 0.36386. Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is 0.9901.In the journal entry to record the establishment of a forward exchange contract, at what amount should the Forward Contract account be recorded on December 1?

On January 3, 2020, Baxter, Inc. acquired 40% of the outstan…

On January 3, 2020, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co. for $2,800,000. This investment gave Baxter the ability to exercise significant influence over Anchor. Anchor’s assets on that date were recorded at $11,700,000 with liabilities of $4,700,000. There were no other differences between book and fair values.During 2020, Anchor reported net income of $600,000. For 2021, Anchor reported net income of $900,000. Dividends of $350,000 were paid in each of these two years.How much income did Baxter report from Anchor for 2020?

Jackson Company acquires 100% of the stock of Clark Corporat…

Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:     Debit   Credit Cash $ 500           Accounts receivable   600           Inventory   900           Buildings (net) (5 year life)   1,600           Equipment (net) (2 year life)   1,000           Land   900           Accounts payable         $ 400   Long-term liabilities (due 12/31/22)           1,900   Common stock           1,000   Additional paid-in capital           700   Retained earnings           1,500   Total $ 5,500     $ 5,500     Net income and dividends reported by Clark for 2020 and 2021 follow:     2020 2021 Net income $ 120   $ 140   Dividends   40     50     The fair value of Clark’s net assets that differ from their book values are listed below:     Fair Value Buildings $ 1,200   Equipment   1,350   Land   1,300   Long-term liabilities   1,750     Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. Compute the amount of Clark’s equipment that would be reported in a December 31, 2020, consolidated balance sheet.                         A)    $825.                   B)    $1,000.            C)    $1,175.            D)    $1,350.            E)    $1,525.