Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000 euros. Relevant exchange rates for the euro are as follows:

Date	Spot Rate	Forward Rate Oct 31,21
September 15, 2021	$1.00	$1.06
September 30, 2021	1.05	1.09
October 31, 2021	1.10	1.10

Marchetti Company has an incremental borrowing rate of 12 percent (1 percent per month). The present value factor for one month is 0.9901. The firm closes the books and prepares financial statements on September 30. Treat each situation below independently. Show supporting calculations to get credit.

1. Marchetti Company ordered the wine on September 15, 2021. The wine arrived and the company paid for it on October 31, 2021. On September 15, Marchetti Company entered into a 45-day forward contract to purchase 200,000 euros. The company properly designated the forward contract as a fair value hedge of a foreign currency firm commitment. Discounted present value will be used to assess the value of the forward contract. Prepare journal entries to account for these transactions. What is the impact on the fiscal year 2021 net income and 2022 net income. What is the net benefit of entering into the forward contract than leaving the purchase transaction unhedged.