Based on past experience, Leickner Company expects to purchase raw materials from aforeign supplier at a cost of 1,000,000 marks on March 15, 2018. To hedge this forecasted transaction, the company acquires a three-month call option to purchase 1,000,000 marks on December 15, 2017. Leickner selects a strike price of $0.69 per mark, paying a premium of $0.001 per unit, when the spot rate is $0.69. The spot rate increases to $0.697 at December 31, 2017, causing the fair value of the option to increase to $7,500. By March 15, 2018, when the raw materials are purchased, the spot rate has climbed to $0.7, resulting in a fair value for the option of $20,000 a. Prepare all journal entries for the option hedge of a orecasted transaction and for the purchase of raw materials, assuming that December 31 is Leickner's year-end and that the raw materials are included in the cost of goods sold in 2018 b. What is the overa mpact on net income over the two accounting periods? .what is the net cash outflow to acquire the raw materials? Prepare all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials, assuming that December 31 is Leickner's year-end and that the raw materials are included in the cost of goods sold in 2018. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list View journal entry worksheet No Date General Journal Debit Credit 12/15/2017 Foreign currency option 1,000 Cash 1,000 2 12115/2017No journal entry required 3 12/31/2017Foreign currency optior 6,500 Accumulated other comprehensive income 6,500 12131/2017 Option expense 500 Accumulated other comprehensive income 500 0315/2018 Foreign currency option Accumulated other comprehensive income 603/15/2018 No journal entry required 703/15/2018 Foreign currency (marts) 803/15/2018 Cash Foreign currency (marls) Foreign currency option 903/15/2018 Accumulated other comprehensive income Adjustment to net income Req B and C >