On March 1, 2011, Mattie Company received an order to sell a machine to a customer in England at a price of 200,000 British pounds. The machine was shipped and payment was received on March 1, 2012. On March 1, 2011, Mattie purchased a put option giving it the right to sell 200,000 British pounds on March 1, 2012 at a price of $380,000. Mattie properly designates the option as a fair hedge of the pound firm commitment. The option cost $2,000 and had a fair value of $2,200 on December 31, 2011. The following spot exchange rates apply: March 1, 2011 : $1.90

December 31, 2011 : $1.89

March 1, 2012 : $1.84

Mattie's incremental borrowing rate is 12 percent, and the present value factor for two months at a 12 percent annual rate is .9803.

Question :

. What was the net impact on Mattie's 2011 and 2012 income as a result of this fair value hedge of a firm commitment? A. $1,800.00 decrease and 291,302 increase B. $1,760.60 decrease and 379,760 increase C. $2,240.40 decrease. D. $1,660.40 increase. E. $2,240.60 increase.

please show with steps how number in correct answer b were calculated