5 On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.44 per Norwegian krone, Derby enters into a forward contract to purchase 695,000 Norwegian kroner at a three-month forward rate of $0.460. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.455 per Norwegian krone, Derby orders and receives the merchandise, paying 695,000 kroner. The merchandise is sold within 30 days. What amount(s) does Derby report in net income as a result of this cash flow hedge of a forecasted transaction and the related purchase and sale of merchandise? 8 00:34:10 Multiple Choice Cost of goods sold of $305,800 plus foreign exchange loss of $13,900 Cost of goods sold of $319,700 Cost of goods sold of $316,225 plus foreign exchange loss of $3,475 Cost of goods sold of $319,700 less foreign exchange gain of $13,900