Advanced Accounting please help

On September 1, 2009 Philips corporation sold merchandise to a foreign customer for 300,000 Brazilian real with payment to be received on March 1, 2010. At the date of sale, Philips entered into a six month forward contract to sell 300,000 reals. The forward contract was properly designated as a fair value hedge. The following exchange rates apply:

Date Spot rate Forward rate

(to March 1, 2010)

September 1, 2009 $0.46 $ 0.49

December 31, 2009 0.50 0.52

March 1, 2010 0.54

Philips incremental borrowing rate is 12%. The present value factor for four months at an annual interest rate of 12% is .9610. What journal entry should Philips prepare to record the value of the forward contract on December 31, 2009?

Loss on Forward contract $8,649

Forward contract $8,649

Forward Contract $8,649

Gain on Forward contract $8,649

Forward Contract $8,649

Accumulated Other Comprehensive Income (AOCI) $8,649

Loss on Forward contract $9,000

Forward contract $9,000

Accumulated Other Comprehensive Income (AOCI) $8,649

Forward contract $8,649