Ivan has 14,000 barrels of oil that were purchased a month ago at $50.00 per barrel. On November 1, 2014, Ivan hedges the value of the inventory by entering into a forward contract to sell 14,000 barrels of oil on January 31, 2015 for $60.00 per barrel. The forward contract is to be settled net. Assume this is a fair value hedge.

Assume a 6% discount rate is reasonable, and using a mixed-attribute model, prepare the journal entries to account for this hedge at the following dates: When the market price is... November 1, 2014 $60.00 per barrel December 31, 2014 $65.00 per barrel January 31, 2015 $62.00 per barrel