On December 1, 2016, Keenan Company, a U.S. firm, sold merchandise to Velez Company of CanaOn December 1, 2016, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2017. Keenan purchased a foreign currency put option with a strike price of $.97 (U.S.) on December 1, 2016. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow date Spot rate Option premium December 1 2019 .97 .005 December 31 2019 .95 .006 February 1 2020 .94 NA The company's borrowing rate is 12 percent. The present value factor for one month is .9901. Discounted present value will be used to assess the value of the firm commitment 1. prepare all journal entries to account for the foreign currency option, firm commitment, and eht export sale. Show supporting calculations as needed 2. What is the net benefit (loss) of using the option that leaves the firm commitment unhedged? Indicate whether there is a net benefit or a net loss