$***$ All of the journal entries are correct except for the following entry: Record the entry to adjust the carrying value of the forward contract to its current fair value on $03/01/2021$ entry #$6.$ The other entries that are correct are int he picture. Please also complete requirement B: What is the impact on net income over the two accounting periods resulting from flucutations in the value of the foreign currency? $[$Looking for net effect on the Foreign Exchange Gain$/$Loss account$].$

$($Do not round intermediate calculations. Negative amounts should be entered with a minus sign.$)$

b$-2.$ Impact on net income over $2020$ and $2021$

Thank you!!

Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2020,$ with payment of $31,000$ dinars to be received on March $1,2021.$ Icebreaker enters into a forward contract on December $1,2020,$ to sell $31,000$ dinars on March $1,2021.$ Relevant exchange rates for the dinar on various dates are as follows:

Date Spot Rate Forward Rate

$($to March $1,2021)$

December $1,2020$ $ $4\mathrm{.}90$ $ $4\mathrm{.}975$

December $31,20205\mathrm{.}005\mathrm{.}100$

March $1,20215\mathrm{.}15$ N$/$A

Icebreaker must close its books and prepare financial statements at December $31.$

b $-1.$ Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U$.$S$.$ dollars.

b$-2.$ What is the impact on net income over the two accounting periods resulting from flucutations in the value of the foreign currency? $[$Looking for net effect on the Foreign Exchange Gain$/$Loss account$].$Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare joumal entries for the sale and foreign currency forward contract in U$.$S$.$ dollars. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$