On March 1, Bronco Corporation purchased goods from a foreign supplier at a price of 1,000,000 Bitcoin (B). It will make payment in three months at June 1. On March 1, Bronco also acquired a forward contract to purchase 1,000,000 B in three months for SR50.000. Relevant exchange rates for the Bitcoin are as follows: Forward Rate (to June 1, 2018) D Date Spot Rate 1-Mar-18 $1 = 1.25000 B 31-Mar-18 $1 1.21951 B 1-Jun-18 $11.33333 B $1 $1 = 1.17647 B 1.20482 8 N/A Required: Bronco's incremental borrowing rate is 9%. Bronco must close its books and prepare its first-quarter financial statements on March 31. Assuming that Bronco designates the forward contract as a fair value hedge of a foreign currency payable: 1. Prepare all required journal entries for these transactions in U.S. dollars (round to nearest dollar), and 2. Determine the overall impact on net income over the two accounting periods.