Drumbeat Corporation, a U.S. company, sold products to a customer in the United Kingdom on 1 October 20x1 with payment of 175,000 to be received on 1 April 20x2. Drumbeat Corporation enters into a forward contract on 1 October 20x1 to sell the 175,000 on 1 April 20x2. Relevant exchange rates between US dollar and pound are as follows: Spot Rate Forward Rate to 4/1/20x2) October 1, 20x1 $1.89 $1.86 December 31, 20x1 $1.86 $1.84 April 1, 20x2 $1.91 $1.91 When computing the fair value on December 31, use an interest rate of 8% per annum that corresponds to the company's incremental borrowing rate (Hint: Use only the rate for the appropriate number of months that are applicable). Drumbeat Corporation closes its books and prepares financial statements on 31 December each year. Required (show your calculations): 1. What is the dollar value of the outstanding pound receivable on 31 December 20x1? (2 marks) 2. What is the fair value of the forward contract on (i) 31 December 20x1 and (ii) on April 1, 20x2? (6 +2 marks) 3. What is the change in fair value of the forward contract on 01/04/x2 (2 marks)