4. Barako Company acquired a heavy equipment for $14,100 from a supplier in Detroit, USA on December 1, 2020. Payment in US dollars was due on March 31, 2021. On the same date, to hedge this foreign currency exposure, Barako entered into a forward contract to purchase $14,100 from Citibank for delivery on March 31, 2021. Direct exchange rates for dollars on different dates were as follows: Spot Rates Bid Offer December 1, 2020 41.6 41.4 December 31, 2020 42.5 42.3 March 31, 2021 43.4 43.7 Forward Rates Dec. 1 Dec. 31 March 31 30-day futures 42.3 41.8 43.2 60-day futures 41.8 42.2 42.6 90-day futures 40.6 42.5 43-4 120-day futures 42.2 42.8 42.9 1. What is the reported value of the liability to the vendor at December 31, 2020? a. 596,430 b. 599.250 C. 596,400 599.200 2. What is the net impact in Barako Company's income in 2020 as a result of this hedging activity? a. 8,460 net gain b. 8,460 net loss C. 8.500 net gain d. 8.500 net loss