Assume that on August $15,$ the company forecasted the purchase of beer on October $15.$ On August $15,$ the company acquired a two$-$month call Acme Corporation, a U$.$S$.-$based importer of beer and wine, purchased $1,000$ cases of Oktoberfest$-$style beer from Coyote $($before

purchasing the company$)$ for $50,000$ euros. Relevant U$.$S$.$ dollar exchange rates for the euro are as follows:

The company closes its books and prepares third$-$quarter financial statements on September $30.$

option on $50,000$ euros. The company designated the option as a cash value hedge of a forecasted foreign currency transaction. The time value of

the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the

option. Prepare journal entries to account for the foreign currency option and import purchase.