On 1 June 2019 Platinum Ltd (a company in Australia) enters into a firm commitment with MFG Ltd (a company in USA) to buy US$ 1,500,000 of inventory. The inventory will be transferred to Platinum Ltd (making Platinum Ltd therefore liable for the debt) on 1 August 2019 and payment will be made on that date. The financial year end of Platinum Ltd is 30 June. Assume that Platinum Ltd has designated the hedging arrangement as a 'fair value hedge. The relevant spot rates and forward rates are as follows: Date Spot rate Forward rate for delivery on 1 August I June 2019 USS 1.00 - $A 1.35 USS 1.00 SA 1.40 30 June 2019 USS 1.00 = SA 1.30 USS 1.00 = SA 1.35 1 August 2019 USS 1.00 SA 1.50 USS 1.00 SA 1.50 1. Provide the measurements (calculation) of the fair values of the firm commitment and the forward rate contract on each date i.e. 1 June 2019, 30 June 2019 and 1 August 2019. 3 Marks) 2. Would there any journal entry for the hedged item and hedging instrument on 1 June 2019, if not why? (1 Mark) 3. Provide journal entries to account for hedge item and hedging instrument on 30 June 2019. (2 Marks) 4. Provide journal entries to adjust the fair value of firm commitment and the forward contract on 1 August 2019. (2 Marks) 5. Provide journal entry to close out the forward contract. (1 Mark) 6. Provide journal entry to adjust the cost of inventory with respect to gain or loss on unrecognised firm commitment