Little Inc. enters into a forward contract with the King Bank at a 3-month forward rate of FC1 = C$1.30. One month later, the rate for a 1-month forward contract is FC1 = C$1.28. Which of the following would result in a credit to other comprehensive income for the first month of the forward contract?

1) The forward contract is designated as a fair value hedge of an anticipated accounts receivable.

2) The forward contract is designated as a fair value hedge of an anticipated accounts payable.

3) The forward contract is designated as a cash flow hedge of an anticipated accounts receivable.

4) The forward contract is designated as a cash flow hedge of an anticipated accounts payable