On 1 June 2019, Wallaby Ltd enters into an agreement with Brit PLC of London, to purchase inventory for 400,000. The inventory is delivered FOB on 31 July, and is paid for in British pounds on 31 August 2019. To hedge the purchase, Wallaby enters into a forward contract on 1 June 2019 to purchase 400,000 at a forward rate of AUD 1 = 0.42 for delivery on 31 August 2019. Wallaby Ltd has a balance date of 30 June. The following forward exchange rates are applicable: 1-June-19 AUD 1 = 0.42 30-June-19 AUD 1 = 0.40 31-July-19 AUD 1 = 0.36 31-August-19 AUD 1 = 0.38 The forward contract is designated as a hedging instrument on a highly probable purchase of inventory for the purposes of Australian accounting standards. What amounts will be passed to the Income Statement and/or OCI of Wallaby Ltd (as a debit or a credit) for gains and losses on the forward contract at (i) 30 June 2019 and (ii) 31 August 2019? Select one: a. (i) credit Foreign exchange revenue $8,000 (ii) debit Foreign Exchange Expense $8,000 O b. (i) debit Cash flow hedge reserve (OCI) $47,619 (ii) credit Foreign Exchange revenue $58,479 O c. (i) debit Foreign exchange expense $47,619 (ii) debit Foreign Exchange Expense $58,479 O d. (i) credit Cash flow hedge reserve (OCI) $47,619 (ii) credit Foreign Exchange revenue $52,632 e. (i) credit Cash flow hedge reserve (OCI) $47,619 (ii) debit Foreign Exchange Expense $58,479 On 1 June 2019, Wallaby Ltd enters into an agreement with Brit PLC of London, to purchase inventory for 400,000. The inventory is delivered FOB on 31 July, and is paid for in British pounds on 31 August 2019. To hedge the purchase, Wallaby enters into a forward contract on 1 June 2019 to purchase 400,000 at a forward rate of AUD 1 = 0.42 for delivery on 31 August 2019. Wallaby Ltd has a balance date of 30 June. The following forward exchange rates are applicable: 1-June-19 AUD 1 = 0.42 30-June-19 AUD 1 = 0.40 31-July-19 AUD 1 = 0.36 31-August-19 AUD 1 = 0.38 The forward contract is designated as a hedging instrument on a highly probable purchase of inventory for the purposes of Australian accounting standards. What amounts will be passed to the Income Statement and/or OCI of Wallaby Ltd (as a debit or a credit) for gains and losses on the forward contract at (i) 30 June 2019 and (ii) 31 August 2019? Select one: a. (i) credit Foreign exchange revenue $8,000 (ii) debit Foreign Exchange Expense $8,000 O b. (i) debit Cash flow hedge reserve (OCI) $47,619 (ii) credit Foreign Exchange revenue $58,479 O c. (i) debit Foreign exchange expense $47,619 (ii) debit Foreign Exchange Expense $58,479 O d. (i) credit Cash flow hedge reserve (OCI) $47,619 (ii) credit Foreign Exchange revenue $52,632 e. (i) credit Cash flow hedge reserve (OCI) $47,619 (ii) debit Foreign Exchange Expense $58,479