On December 15, 2014, ET Company sold inventory to a foreign customer for 5,000,000 foreign currency units (fu's). Payment to be received on February 13, 2015. On December 15, 2014, to hedge the transaction, ET signed a forward contract to sell 5,000,000 fcu's in 60 days. Ignore time value of money. The forward contract will be NOT BE SETTLED NET. The related exchange rates are shown below:

forward rate to

spot rate. 2/13/15

December 15, 2014. $0.015 = 1fcu. $0.015 = 1fcu

December 31, 2014. $0.017 = 1 fcu. $0.020= 1fcu

February 13, 2015. $0.018 = 1 fcu. $0.018 = 1 fcu

Required

Based on the entries for entries for ET Corporation on December 15, December 31, and February 13. (If no entry is required on a particular date, indicate "No entry" in the General Journal.)

Answer the questions that follow. This is a fair value hedge.