On 6/1/19, Ross Company purchased inventory costing 100,000 FC from a foreign firm to be paid on 8/1/19. Also, on 6/1/19, Ross acquired an option for $1,500 to purchase 100,000 FC for delivery on 8/1/19. The strike price for the option was $0.685. Ross has a June 30 fiscal year-end. The exchange rates and option values were as follows: 6/1/19 6/30/19 8/1/19 Spot 1 FC = $0.68 1 FC= $0.70 1 FC = $0.73 Option value $1,500 $2,500 $4,500 Required: 1. Prepare all relevant journal entries suggested by the above facts, assuming that the hedge is designated as a fair value hedge. 2. Determine how much of the option's value of $2,500 on June 30 is its time value and how much is its intrinsic value. 3. Prepare a partial income statement and balance sheet as of the company's June 30 fiscal year- end that reflects the above facts