Hero Corp purchased goods from a foreign supplier on Dec. 1, 2019 at a price of 1 million foreign currency units (FC). Payment will be received in three months on March 1, 2020. Hero acquired an option to buy 1 million FC in three months at a strike price of $0.082. Hero's fiscal year ends on Dec. 31. The pertinent exchange rates were as follows:

Date	Spot Rate	Call Option Premium for March 1, 2020 (strike price $0.082)
Dec. 1, 2019	$0.085	$0.004
Dec. 31, 2019	0.089	0.005
March 1, 2020	0.084	0.002

Assuming Hero designates the option as a fair value hedge, what is the net impact of these transactions on net income for 2019 and 2020?

Group of answer choices

$4,000 gain (2019), $2,000 gain (2020)

$4,000 loss (2019), $5,000 gain (2020)

$3,000 loss (2019), $2,000 gain (2020)

$3,000 gain (2019), $2,000 loss (2020)000

$4,000 gain (2019), $5,000 loss (2020)