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Icebreaker Company (a US based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 28,000 dinars to be made on

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Icebreaker Company (a US based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 28,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase On December 1, 2020, Icebreaker enters into a forward contract to purchase 28,000 dinars on March 1,2021 Relevant exchange rates for the dinar on various dates are as follows: Q.1. Assuming that lcebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars 0.2. What is the impact on 2020 net income? 0.3. What is the impact on 2021 net income? 0.4. What is the impact on net income over the two occounting periods? b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign curtency payable, prepare journa entries for the import purchase and foreign currency forward contract in U.S. dollars b-2. What is the impoct on net income in 2020 and in 2021 ? b-3. What is the impact on net income over the two accounting periods

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