$9-17.$ Brandt Corp. $($a U$.$S$.-$based company$)$ sold parts to a South Korean customer on December $1,2023,$ with payment of $10$ million South Korean won to be received on March $31,2024.$ The following exchange rates apply:

Date

Spot Rate

Forward Rate

$($to March $31,2024)$

December $1,2023$

$$0\mathrm{.}0035$

$$0\mathrm{.}0034$

December $31,2023$

$0\mathrm{.}0033$

$0\mathrm{.}0032$

March $31,2024$

$0\mathrm{.}0038$

$$N$/$A

$$

$$

a$.$ Assuming that Brandt did not hedge its foreign exchange risk, determine how much foreign exchange gain or loss the company should report on its $2023$ income statement with regard to this transaction.

b$.$ Assuming that Brandt entered into a forward contract to sell $10$ million South Korean won on December $1,2023,$ as a fair value hedge of a foreign currency receivable, determine the net impact on net income in $2023$ resulting from a fluctuation in the value of the won. Brandt amortizes forward points on a monthly basis using a straight$-$line method. Ignore present values.