On August 31, year 1, Runner Inc. enters into a contract to purchase 10,000 pounds of sugar for 20 cents per pound. The purchase is to be made on December 31, year 1. In order to hedge its position Runner enters into a short forward contract to sell 10,000 pounds of raw sugar for 17 cents per pound. The values of both sugar and the raw sugar forward are shown below: Sugar / pound Raw Sugar Forward / pound Aug. 31, year 1 $0.20 $0.17 Dec. 31, year 1 $0.24 $0.19 As a result of hedging the purchase commitment, how much gain or loss will Runner show overall? Explain why you selected your answer. Show how much gain or loss each portion of the transactions will show. You can use any site that you like to understand and explain the gain or loss on the hedging of the purchase commitment.