On June $1,$ Year $1,$ Tsanumis Corporation $($a U$.$S$.-$based manufacturing firm$)$ received an order to sell goods to a foreign customer at a price

of $1$ million euros. The goods will be shipped and payment will be received in three months on September $1,$ Year $1.$ On June $30$

Tsanumis Corporation purchased an option to sell $1$ million euros in three months at a strike price of $$1\mathrm{.}00.$ The option is properly

designated as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured through

reference to changes in the spot rate.

Relevant exchange rates and option premiums for the euro on various dates are as follows:

Tsamunis's incremental borrowing rate is $12$ percent. The present value factor for two months at an annual interest rate of $12$ percent $(1$ percent per

month$)$ Is $0\mathrm{.}9803.$ Tsanumis must close its books and prepare financial statements at June $30.$

Complete the following table: $($Show computations in the cell or separately in this worksheet$)$

Record the purchase of the foreiqn currency option.

Record the change in the value of the option.

Record the adjustment of the firm commitment.

Record the change in the value of the option.

Account names

Record the sale and receipt of $1,000,000$ euros.

Account names

Close the firm commitment as an adiustment to net income.