Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 18,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 18,000 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 3.60 3.70 3.85 Forward Rate (to March 1, 2018) 3.675 3.800 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? Date General Journal Debit Credit 0 12/01/2017 Accounts receivable (K) 64,800.00 Sales 64,800.00 2 12/01/2017 No journal entry required 12/31/2017 Accounts receivable (K) 1,800.00 Foreign exchange gain 1,800.00 4 12/31/2017 No Transaction Recorded 12/31/2017 Loss on forward contract Forward contract 6 12/31/2017 No Transaction Recorded 03/01/2018 Accounts receivable (K) 2,700.00 Foreign exchange gain 2,700.00 03/01/2018 Loss on forward contract 10 No Transaction Recorded 11 03/01/2018 Foreign currency (K) 69,300.00 Accounts receivable (K) 69,300.00 3,150.00 66.150.000 12 03/01/2018 Forward contract Cash Foreign currency (K) 69,300.00 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.) Show lessA b- 2. b- Impact on 2017 net income Impact on 2018 net income Impact on net income over 2017 and 2018 b- 4