Ivan has 14,000 barrels of oil that were purchased a month ago at $50.00 per barrel. On November 1, 2014, Ivan hedges the value of the inventory by entering into a forward contract to sell 14,000 barrels of oil on January 31, 2015 for $60.00 per barrel. The forward contract is to be settled net.

Assume this is a fair value hedge.

Assume a 6% discount rate is reasonable, and using a mixed-attribute model, prepare the journal entries to account for this hedge at the following dates:

	When the market price is...
November 1, 2014	$60.00 per barrel
December 31, 2014	$65.00 per barrel
January 31, 2015	$62.00 per barrel