Paul Corporation, a Philippine Company, expects to order goods from a foreign supplier at 250,000 foreign currencies, with delivery and payment to be made on October 24. On July 24, Paul purchased a three-month call option for 250,000 foreign currencies and designated this option as a cash flow hedge of a forecasted foreign currency transaction. The following exchange rates apply.

What amount will Paul include as an option expense in net income during the period July 24 to October 24?

Rikka Co. ordered parts costing 100,000 baht for a foreign supplier or May 12 when the exchange rate was P.24 per baht. A one-month forward contract was signed on the date to purchase 100,000 baht at a forward rate of P.25 per baht. On June 12, when the parts were received, and payment was made, the exchange rate was P.28 per baht. At what amount should inventory be reported?

On December 1, 2020, Gary Inc. entered into a 120-day forward contract to purchase 250,000 US dollars for speculative purposes. Gary, Inc., fiscal year ends on December 31. The exchange rates are as follows:

How much is the forex gain or loss to be reported from this forward contract in 2021?

Jane had the following information:

1. Purchased merchandise from a foreign supplier on January 20, 2020 for the Philippine peso equivalent of P60,000 and paid the invoice on April 20, 2020, at the Philippine peso equivalent of P68,000.
2. On September 1, 2020, borrowed the Philippine peso equivalent of P300,000 evidence by a note that is payable in the lender’s local currency on September 1, 2021. On December 31, 2020, the Philippine peso equivalent of the principal amount was P320,000.

In Jane’s income statement, what amount should be included as a foreign exchange loss?