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On July 1, 2015 the West Companypurchased a 1,000,000 Pound Sterling CD from the Kardashian Bank of London. This 10% 3 year CD pays interest on...

On July 1, 2015 the West Companypurchased a 1,000,000 Pound Sterling CD from the Kardashian Bank of London.  This 10% 3 year CD pays interest on June30.  Additional information is asfollows:

July 1,2015  $1.85 = 1 pound sterling

December 31,2015  $1.99 = 1 pound sterling

June 30,2016 $1.88 = 1 pound sterling

December 31,2016 $2.02 = 1 pound sterling

June  30, 2017 $2.05 = 1 pound sterling

December 31,2017  $2.07 = 1 pound sterling

June 30,2018  $2.00 = 1 pound sterling

Required;a)  prepare all necessary journal entriesmade by the West Company with respect to its investment in the KardashianCD.  Hint:  don’t forget adjusting entries at the end ofeach year. 

b) How muchincome or loss does West show in 2015, 2016, 2017 and 2018 due to itsinvestment in Kardashian?

c) If West had purchased a forward contract onJuly 3rd 2015 to sell the 1 million pound sterling for $1.99 howwould the income or loss of West have been different in 2015, 2016, 2017,2018?  You can ignore the pv calculationsbut I do want dollar answersOn July 1, 2015 the West Company purchased a 1,000,000 Pound Sterling CD from theKardashian Bank of London. This 10% 3 year CD pays interest on June30. Additionalinformation is as follows:July...
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