Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 16,000 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 16,000 dinars on March 1, 2021.

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

Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1, 2020, with payment of 16,000 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 16,000 dinars on March 1, 2021.

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

Date	Spot Rate			Forward Rate (to March 1, 2021)
December 1, 2020	$	3.40		$	3.475
December 31, 2020		3.50			3.600
March 1, 2021		3.65			N/A

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-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?