Eximco Corporation $($based in Champaign, Illinois$)$ has a number of transactions with companies in the country of Mongagua, where the currency is the mong. On November $30,2015,$ Eximco sold equipment at a price of $500,000$ mongs to a Mongaguan customer that will make payment on January $31,2016.$ In addition, on November $30,2015,$ Eximco purchased raw materials from a Mongaguan supplier at a price of $300,000$ mongs; it will make payment on January $31,2016.$ To hedge its net exposure in mongs, Eximco entered into a two$-$month forward contract on November $30,2015,$ to deliver $200,000$ mongs to the foreign currency broker in exchange for $$104,000.$ Eximco properly designates its forward contract as a fair value hedge of a foreign currency receivable. The following rates for the mong apply:

Date Spot Rate Forward Rate

$($to January $31,2016)$

November $30,2015$ $$0\mathrm{.}53$ $$0\mathrm{.}52$

December $31,20150\mathrm{.}500\mathrm{.}48$

January $31,20160\mathrm{.}49$ N$/$A

Eximco$$s incremental borrowing rate is $12$ percent. The present value factor for one month at an annual interest rate of $12$ percent $(1$ percent per month$)$ is $0\mathrm{.}9901.$

a$)$ Prepare all journal entries, including December $31$ adjusting entries, to record these transactions and the forward contract. $($Do not round intermediate calculations. If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$

b$)$ What is the impact on net income in $2015?$

c$)$ What is the impact on net income in $2016?$