Car ID Inc. is a U.S.-based distributor of auto supplies for several domestic and foreign car companies. On November 1, Year 1, Car ID sold and shipped auto parts to a customer in Switzerland for a price of 500,000 Swiss francs (CHF). Payment is to be received on January 30, Year 2. On the date of sale, Car ID also entered into a three-month forward contract to sell CHF 500,000. The forward contract is properly designated as acash flow hedge of a foreign currency receivable. Car ID's incremental borrowing rate is 12%. The present value factor for one month at an incremental borrowing rate of 12% is .99010. Relevant exchange rates are as follows:

SpotForward Rate

DateRate(to January 30, Year 2)

November 1, Year 1. . . . . . . . . . . . . .$0.500$0.495

December 31, Year 1. . . . . . . . . . . . . .0.5200.516

January 30, Year 2. . . . . . . . . . . . . . . .0.4900.490

What is the impact on net income for each year, and in total, due to the foreign currency aspects of this transaction?