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Moving to another question will save this response Question 19 of 2 estion 19 1 points...

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Moving to another question will save this response Question 19 of 2 estion 19 1 points On January 1, 2020, Iniesta Corporatio
Moving to another question will save this response Question 19 of 2 estion 19 1 points On January 1, 2020, Iniesta Corporation invested in Kasaba Inc.'s two-year, 10% notes, with interest receivable quarterly. Iniesta entered into a two-year interest rate swap agreement on January 1, 2020 and designated the swap as a fair value hedge. The agreement called Iniesta to make payment based on a 10% fixed interest rate on a notional amount of 200,000 and to receive interest based on a floating interest rate. The contract called for cash settlement of the net interest amount quarterly Floating (LIBOR) settlement rates were 10% at January 1,8% at March 31, and 6% June 30, 2000. The fair values of the investment in notes and swap agreementare as follows January March 31 June 30 Fair value of interest rate swap 0 56,200 $12.000 Fair value of the investment in notes $200.000 $206.200 $212,000 What is Iniesta's net cash settlements June 30 and how will it be recorded? $5,000, as interest revenue in the Income Statement $3,000, as Other Comprehensive Income 55,800, as interest revenue in the income Statement $3,000, as interest revenue in the Income Statement $5,000, Other Comprehensive Income & 3 5 E R T Y C 0 P 1 ㅈ S D F G H Н J K к L A ? X C с V B N M V. he G and command option

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Ans) According to Question January ! March 31 June 30 fair value of Interest $ $6,200 $12.000 rate swap $ 206,200 $ 212,000134 И ® Floating payments Calculation Quaterly Notional Amount = $200,000 Quaterly Notional Amount = $50,000 floating Payments

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