Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 34,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 34,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows:

Date	Spot Rate			Forward Rate (to March 1, 2018)
December 1, 2017	$	5.20		$	5.275
December 31, 2017		5.30			5.400
March 1, 2018		5.45			N/A

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