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Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 31.000 korunas to be received on March

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Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 31.000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 31,000 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 $ 4.90 5.00 5.15 Porvard Rate (to March 1, 2018) $ 4.975 5.100 Brandlin's incremental borrowing rate is 9 percent. The present value factor for two months at an annual interest rate of 9 percent (0.75 percent per month) is 0.9852. Brandlin must close its books and prepare financial statements at December 31 4-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in US dollars. a-2. What is the impact on 2017 net income? a-3. What is the impact on 2018 net income? 2-4. What is the impact on net income over the two accounting periods? 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? Complete this question by entering your answers in the tabs below. Req A1 Req A2 to A4 Req B1 Req B2 to B4 Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, 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.)

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