On March 1 the price of a commodity is $1,000 and the December futures price this commodity is $1,015. On November 1 the spot price of the commodity is $980 and the December futures price is $981. A producer of the commodity entered a December futures contracts on March 1 to hedge the sale of the commodity on November 1. The producer closed out the position on November 1. What is the effective price (after taking account of hedging) received by the producer?

Trecek corporation incurs research and development costs of $625,000 in 2017, 30 percent of which relate to development activities subsequent to ias 38 criteria having been met that indicate an intangible asset has been created. the newly developed product is brought to market in january 2018 and is expected to generate sales revenue for 10 years. assume that a u.s.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with ifrs. thus, adjustments to convert from u.s. gaap to ifrs must be made. ignore income taxes. required: (a) prepare journal entries for research and development costs for the years ending december 31, 2017, and december 31, 2018, under (1) u.s. gaap and (2) ifrs. (c) prepare the entry(ies) that trecek would make on the december 31, 2017, and december 31, 2018, conversion worksheets to convert u.s. gaap balances to ifrs.