Icebreaker Co. sells parts to a foreign supplier on 12/1/20 with payment of 16,000 dinars to be received on 3/1/21.
		On 12/1/20, Icebreaker enters into a forward contract to sell 16,000 dinars on 3/1/21.
		Icebreaker closes its books and prepares financial statements at 12/31.
							Dinar:
					Forward		principal
				Spot	Rate		currency unit
			Date	Rate	(to 3/1/21)		in several
			12/1/20	$2.70	$2.775		countries
			12/31/20	2.80	2.900		near the
			3/1/21	2.95	N/A		Mediterranean Sea
(a)		Assume that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable.
		Prepare journal entries for the sale and FC forward contract in U.S. dollars. What is the income impact on 2020,
		2021, and over the two-year period?
								Total
								I/S Impact
Date		Account Name	DR	CR				+/(-)