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Business, 19.03.2021 03:00 Raymond123

17)On October 1, 2019, AmeriCo, a U. S. company withfiscal year-end on December 31, signed. A noncancelable order to purchase inventory on December 1, 2019 from a company in London for 30,000 British pound sterling with payment due on April 1, 2020. To hedge against the exposed risk from changes in foreign exchange rates, AmeriCo also entered into a 180-day forward contract on October 1, 2019, to purchase 30,000euros on April 1, 2020. According to the generally accepted accounting principles in the U. S. this forward contract should be account for as:

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