| Problem 10-5 |
| PROBLEM 10-5 |
| For each option | | | March 1 | March 31 | May 31 |
| Notional amount |
| Strike price |
| Spot rate |
| Value of option… |
| Intrinsic value |
| Time value |
| | | | 1st Quarter | 2nd Quarter | 3rd Quarter | Total |
| Related to the commitment: |
| Gain (loss) on commitment |
| Gain (loss) on option transferred from OCI to offset |
| gain or loss on commitment |
| Gain (loss) in time value |
| Sales revenue |
| Cost of Sales: |
| Original cost |
| Adjustment for change in value of commitment |
| Additional processing costs |
| Total impact on earnings |
| Related to the purchase of equipment: |
| Gain (loss) in time value |
| Depreciation expense: |
| Total impact on earnings………………………………………………. |
| Related to the note payable: |
| Total impact on earnings………………………………………………. |
knohe_
week_06_templates.xlsx
