marypoppins6276 marypoppins6276

12-12-2020
Business

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A company has a discount on a forward contract for an asset. How is the discount recognized over the life of the contract?

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Vickiee Vickiee

13-12-2020

Answer: It is charged to accumulated other comprehensive income.

Explanation:

The discount is recognized over the life of the contract when it is charged to accumulate other comprehensive income.

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