Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materlals from a foreign supplier on December $1,2020,$ wth payment of

$16,000$ dinars to be made on March $1,2021.$ The materlals are consumed Immedlately and recognized as cost of goods sold at the date

of purchase. On December $1,2020,$ Icebreaker enters into a forward contract to purchase $16,000$ dinars on March $1,2021.$

Relevant exchange rates for the dinar on varlous dates are as follows:

a$-1.$ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a forelgn currency payable, prepare joumal

entrles for the import purchase 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 perlods?

b$-1.$ Assuming that Icebreaker designates the forward contract as a falr value hedge of a forelgn currency payable, prepare journal

entries for the import purchase and foreign currency forward contract in U$.$S$.$ dollars.

b$-2.$ What is the impact on net Income In $2020$ and in $2021?$

b$-3.$ What is the impact on net income over the two accounting perlods?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Req A$1$

Req A$2$ to A$4$

Req B$1$

Req $B2$ to $B3$

b$-2.$ What is the impact on net income in $2020$ and in $2021?$

b$-3.$ What is the impact on net income over the two accounting periods?

$($Do not round intermediate calculations. Negative amounts should be entered with a minus sign.$)$