Jackson Corporation (a U.S.-based company) sold parts to a Korean customer on December 16, 2024, with payment of 20 million Korean won to be received on January 15, 2025. The following exchange rates applied:
|Date||Spot Rate||Forward Rate to January 15|
|December 16, 2024||$ 0.00082||$ 0.00089|
|December 31, 2024||0.00080||0.00083|
|January 15, 2025||0.00086||0.00086|
Assuming a forward contract was entered into on December 16 as a fair value hedge, what would be the net foreign exchange gain or loss on Jackson’s 2024 income statement related to this transaction? Jackson amortizes forward points using the straight-line method. Ignore present values.
$0 (no impact)
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