On june 1, 2017, micro corp. received an order for parts from a mexican customer at a price of 1,000,000 mexican pesos with a delivery date of july 31, 2017. on june 1, when the u. s. dollar–mexican peso spot rate is $0.115, micro corp. entered into a two-month forward contract to sell 1,000,000 pesos at a forward rate of $0.12 per peso. micro designates the forward contract as a fair value hedge of the firm commitment to receive pesos, and the fair value of the firm commitment is measured by referring to changes in the peso forward rate. micro delivers the parts and receives payment on july 31, 2017, when the peso spot rate is $0.118. on june 30, 2017, the mexican peso spot rate is $0.123, and the forward contract has a fair value of $2,400. problem 9-19 (lo 9-8) what is the net impact on micro's net income for the quarter ended september 30, 2017, as a result of this forward contract hedge of a firm commitment?
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On june 1, 2017, micro corp. received an order for parts from a mexican customer at a price of 1,000...
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