On December 1.2023, Keenan Company, a U.S. firm, received an order to sell merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD) Keenan would ship the merchandise and recetve payment on February 1, 2024. Keenath purchased a foreign currency put option with a strike price of $.97 (U.S) on December 1, 2023. This foreign currency option was designated as a fair value hedge of a foreign currency firm commitment. Relevant exchange rates follow: 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 comhitment. Required: 1. (25 points) Prepare all journal entries to account for the foreign currency option, firm commitment, and the export sale. Show supporting calculations as needed to obtain credit. 2. (4 points) What is the net benefit (loss) of using the option than leaving the firm commitment unhedged? Be sure to indicate whether there is a net benefit or a net loss