1' Corsa M'Jf\" Company SENS parts to a foreign customer on December 1. "i'ear 1. with payment of EDDDD Euros to be received on March 1. 1fear 2. Corsa enters into a forward contract on December 1. VEHT 1; to sell 3D.DDD Euros on March 1, Year 2. Relevant exchange rates for the Euro on various dates are as follows: Spot Fonoard Rate \"at\" Rate [to March 1J Yr 2} December 1, \"rear 1 stop $1.05 December 31. Teari 51.n5 51.10 March 1r 't'ear 2 $1.15 Corsa's incremental borrowing rateis 12 percent. The presentvalue factor for two months at an annual interest rate of 12 percent {1 percent per month} is 0.9503. Corsa must close its books and prepare nancial statements at December 31. {Round all answers to the nearest $1]. Required: a} Assuming that Corsa designates the forward contract as a cash flow hedge of a foreign currech receivable, prepare journal entries forthese transactions in LLS. dollars. What is the impact on Year 1 net income? What is the impact on Year 2 net income? What is the impact on net income ouer the two accounting periods? bi Assuming Corsa designates the forward contract as a fair trellie hedge of a foreign current-g.r receivable. prepare journal entries for these transactions in U5. dollars. What is the impact on Year I not income? What is the Impact on \"few 2 net income? What is the impact on net income over the two accounting periods