What was the impact on Mosby's 2018 net income as a result of this fair value hedge of a firm commitment?
A) $1,760.60 decrease.
B) $1,960.60 decrease.
C) $1,000.00 decrease.
D) $1,760.60 increase.
E) $1,960.60 increase.

Question

Quizplus · Accepted Answer

Since the fair value of the hedge decreased by $1,760.60, Mosby's net income decreased by the same amount due to the fair value hedge of a firm commitment. Therefore, the correct answer is A.

What Was the Impact on Mosby's 2018 Net Income as a Result