Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2020,$ with payment of $16,000$ dinars to

be received on March $1,2021.$ Icebreaker enters into a forward contract on December $1,2020,$ to sell $16,000$ dinars on March $1,2021.$

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:

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

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 $2020$ net income?

a$-3.$ What is the impact on $2021$ net income?

a$\mathrm{.}4.$ What is the impact on net income over the two accounting periods?

b$-1$ Assuming that lcebreaker 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 $2020$ net income?

b$-3$ What is the impact on $2021$ net income?

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

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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. $($If no entry is required for a

transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations.$)$