Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2023,$ with payment of $22,000$ dinars to be received on March $1,2024.$ Icebreaker enters into a forward contract on December $1,2023,$ to sell $22,000$ dinars on March $1,2024.$ The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight$-$line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:

$\backslash$table$[[$Sate$,$Forward Rate $($to$,],[$December $1,2023,$$$4\mathrm{.}00,$March $1,2024)],[$December $31,2023,4\mathrm{.}10,4\mathrm{.}075],[$March $1,2024,4\mathrm{.}25,$N $/$ A$]]$

Icebreaker must close its books and prepare financial statements at December $31.$

Required:

a$-1.$ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U$.$S$.$ dollars.

a$-2.$ What is the impact on $2023$ net income?

a$-3.$ What is the impact on $2024$ net income?

a$-4.$ What is the impact on net income over the two accounting periods?

b$-1.$ Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare journal entries for the sale and foreign currency forward contract in U$.$S$.$ dollars.

b$-2.$ What is the impact on $2023$ net income?

b$-3.$ What is the impact on $2024$ net income?

b$-4.$ What is the impact on net income over the two accounting periods?

Complete this question by entering your answers in the tabs bel$$w$.$

Req $A2$ to $A4$

Req B$1$

Req B$2$ to B$4$

Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency receivable, prepare journal entries