Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 10,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 10,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date December 1, 2017 December 31, 2017 March 1, 2018 Spot Rate $ 2.80 2.90 3.05 Forward Rate (to March 1, 2018) $ 2.875 3.000 N/A Brandlin's incremental borrowing rate is 15 percent. The present value factor for two months at an annual interest rate of 15 percent (1.25 percent per month) is 0.9755. Brandlin must close its books and prepare financial statements at December 31. b-1. Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars. b-2. What is the impact on 2017 net income? b-3. What is the impact on 2018 net income? b-4. What is the impact on net income over the two accounting periods? Assuming that Brandlin designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions 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. Round your final answers to 2 decimal places.) Show less No Date General Journal Debit Credit 1 12/01/2017 28,000.00 Accounts receivable (K) Sales 28,000.00 2 12/01/2017 No journal entry required 3 12/31/2017 1,000.00 Accounts receivable (K) Foreign exchange gain 1,000.00 4 12/31/2017 X 1,219.00 Loss on forward contract Forward contract 1,219.00 5 12/31/2017 1,500.00 x Accounts receivable (K) Foreign exchange X X 1,500.00 X 6 12/31/2017 Loss on forward contract X 531.00 Forward contract 531.00 7 03/01/2018 x 30,500.00 X Foreign currency (K) Accounts receivable (K) x 30,500.00 X 6 12/31/2017 Loss on forward contract 531.00 Forward contract 531.00 7 03/01/2018 30,500.00 Foreign currency (K) Accounts receivable (K) 30,500.00 X 8 03/01/2018 Cash 9 03/01/2018 10 03/01/2018 11 03/01/2018 12 03/01/2018 b-2. What is the impact on 2017 net income? b-3. What is the impact on 2018 net income? b-4. What is the impact on net income over the two accounting periods? (Do not round intermediate calculations. Round your final answers to 2 decimal places.) S Impact on 2017 net income $ 27,781.00 X b- 2. b- 3. b- 4. Impact on 2018 net income $ 969.00 Impact on net income over 2017 and 2018 $ 28,750.00