On 1 March 2021 Kangaroo Ltd, an Australian entity, places an order for Euro 10 million of inventory with Napoleon Corporation, a French supplier. The goods will be purchased FOB when shipped from Marseilles in France. The goods are shipped on 1 June 2021 and paid for on 1 August 2021. A decision is made to take out a foreign exchange forward contract for Euro 10 million on 1 March 2021 with Aussie Bank in which Aussie Bank agrees to supply Kangaroo Ltd with Euro 10 million on 1 August 2021 at an agreed forward rate of A$1.00 = 0.51. Kangaroo has a 30 June balance date. Date Spot Exchange rate AUD = Euro 10m Forward exchange AUD - Euro 1 spot rate rate for 1 August 10m / fwd rate (rounded) 1 March 2021 A$1.00 = 0.55 $18,181,818 A$1.00 = 0.51 $19,607,843 1 June 2021 A$1.00 = 0.52 $19,230,769 A$1.00 = 0.523 $19,107,843 30 June 2021 A$1.00 = 0.50 $20,000,000 A51.00 = 0.505 $19,807,843 1 August 2021 A$1.00 = 0.53 $18,867,925 A$1.00 = 0.53 $18,867,925 = Fair Values of the forward rate agreement in AUD are as follows (brackets indicate credit balances) and are based on the AUD = Euro 10m/fwd rate column above: 1 March 2011 SNI 1 June 2011 ($500,000) 30 June 2011 $200,000 1 August 2011 ($739,918) $ Assume that the hedging arrangement satisfies the requirements for hedge accounting as stipulated in AASB accounting standards. Which of the following statements for 30 June 2021 is correct, all in Australian dollars? O a. a. Gain or loss on hedge Gain or loss on forex payable 10m Value of Hedge asset or liability $20,000,000 loss $ zero zero b. Gain or loss on forex payable 10m Value of Hedge asset or liability Gain or loss on hedge $1,132,075 gain $200,000 asset $200,000 gain Oc Gain or loss on hedge Gain or loss on forex payable 10m Value of Hedge asset or liability $769,231 loss $19,407,843 asset $700,000 gain O d. Gain or loss on hedge Gain or loss on forex payable 10m Value of Hedge asset or liability $20,000,000 gain $200,000 liability $200,000 loss Oe Gain or loss on hedge Gain or loss on forex payable 10m Value of Hedge asset or liability $769,231 loss $200,000 asset $700,000 gain