Icebreaker Company $($a U$.$S$.-$based company$)$ sells parts to a foreign customer on December $1,2020,$ with payment of $33,000$ dinars to be received on March $1,2021.$ Icebreaker enters into a forward contract on December $1,2020,$ to sell $33,000$ 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:

Date, Spot Rate, Forward Rate

$($to March $1,2021)$

December $1,2020,$ $ $5\mathrm{.}10,$ $ $5\mathrm{.}175$

December $31,2020,5\mathrm{.}20,5\mathrm{.}300$

March $1,2021,5\mathrm{.}35,$ N$/$A

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$-4.$ 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 $2020$ 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?