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PROBLEM I11 (15 POINTS On December 1, 2017, Americo, Corporation purchased wine on credit from...

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Accounting

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PROBLEM I11 (15 POINTS On December 1, 2017, Americo, Corporation purchased wine on credit from Venezia Company for 500,000. Payment is not due for 90 days. Thus, the transaction will be settled on February 28, 2018. On December 1, 2017, Americo, Corporation also entered into a 90-day forward contract to purchase 500,000. The forward contract is not designated as a hedge. The direct exchange rates were as follows: SPOT FORWARD 12/1/2017 1.20 12/31/2017 1.14$ 2/28/20181.16 21 (90 days) 1.21 (90 days 1.17 (30 days) REQUIRED: Prepare the required information below for both the original (underlying) transaction and the related forward contract. BE SURE TO CLEARLY SHOW ALL OF YOUR WORK

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