On July 1 of 20X5, Maple signed a contract to purchase equipment from a Japanese company for

500,000 yen. The equipment was manufactured in Japan during August and was delivered to Maple on August 30 with payment due in 60 days on October 29. At the point of agreement with the Japanese company, Maple hedged its currency exposure with an exchange Broker. Assume the hedge qualifies for hedge accounting treatment under ASC815. The relevant rates exchange rates are as follows:

	Spot	Forward
July	.112	.116
August	.114	.1155
October	.116	N/A

A): Treated as a fair value hedge throughout

1. Provide all entries for the problem as if settlement took place in October.
2. Provide the income statement effect and the OCI balance as of October.

B) Treated as a cash flow hedge throughout

1. Provide all entries for the problem as if settlement took place in October.
2. Provide the income statement effect and the OCI balance as of October.