On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three mo March 1, when the spot rate is $0.44 per Norwegian krone, Derby enters into a forward contract to purchase 695,000 Norw kroner at a three-month forward rate of $0.46. Forward points are excluded in assessing the forward contract's effectivenes hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.455 p Norwegian krone, Derby orders and receives the merchandise, paying 695,000 kroner. The merchandise is sold within 30c Required: a-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge. a-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold? b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss? Answer is not complete. Complete this question by entering your answers in the tabs below. On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. March 1, when the spot rate is $0.44 per Norwegian krone, Derby enters into a forward contract to purchase 695,000 Norwegian kroner at a three-month forward rate of \$0.46. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.455 per Norwegian krone, Derby orders and receives the merchandise, paying 695,000 kroner. The merchandise is sold within 30 days. Required: a-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge. a-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold? b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss? Answer is not complete. Complete this question by entering your answers in the tabs below. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss? Note: Select "No Effect" if there is no gain or loss. On March 1, Derby Corporation (a U.S.-based company) expects to order merchandise from a supplier in Norway in three months. On March 1, when the spot rate is $0.44 per Norwegian krone, Derby enters into a forward contract to purchase 695,000 Norwegian kroner at a three-month forward rate of $0.46. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.455 per Norwegian krone, Derby orders and receives the merchandise, paying 695,000 kroner. The merchandise is sold within 30 days. Required: a-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge. a-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold? b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss? Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare all journal entries for Derby Corporation related to this transaction and hedge. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field