Torres corporation (a u. s.-based company) expects to order goods from a foreign supplier at a price of 111,000 pounds, with delivery and payment to be made on september 20. on july 20, torres purchased a two-month call option on 111,000 pounds and designated this option as a cash flow hedge of a forecasted foreign currency transaction. the option has a strike price of $1.50 per pound and costs $1,110. the spot rate for pounds is $1.50 on june 20 and $1.55 on september 20. what amount will torres corporation report as an option expense in net income for the quarter ended september 30?

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible policy response? cut taxes to encourage consumer spending invest in infrastructure increase government spending to stimulate the economy cut spending equal to the reduction in tax revenue what is a likely consequence of this policy? unemployment falls due to the economic stimulus. the negative consequences of the recession are magnified. consumer spending increases due to their ability to keep more of their after-tax income. there is hyperinflation due to an increase in aggregate demand.

The vaska company buys a patent on january 1, year one, and agrees to pay $100,000 per year for the next five years. the first payment is made immediately, and the payments are made on each january 1 thereafter. if a reasonable annual interest rate is 8 percent, what is the recorded value of the patent? 1. $378,4252. $431,2133. $468,9504. $500,000

Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?