On March 1, 2021, 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, 2022. On March 1, 2021, Mattie purchased a put option giving it the right to sell 200,000 British pounds on March 1, 2022 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, 2021. The following spot exchange rates apply:

Date	Spot Rate
March 1, 2021	$	1.90
December 31, 2021	$	1.89
March 1, 2022	$	1.84

What was the net impact on Matties 2022 net income including the fair value hedge of a firm commitment?

Multiple Choice

• $379,800 decrease.

• $8,400 increase.

• $8,400 decrease.

• $4,600 decrease.

• $379,800 increase.