On May 1, 2007, Mosby Company received an order to sell a machine to a customer in Canada at a price of 2,000,000 Mexican pesos. The machine was shipped and payment was received on March 1, 2008. On May 1, 2007, Mosby purchased a put option giving it the right to sell 2,000,000 pesos on March 1, 2008 at a price of $190,000. Mosby properly designates the option as a fair value hedge of the peso firm commitment. The option cost $3,000 and had a fair value of $3,200 on December 31, 2007. The following spot exchange rates apply: Date Spot rate May 1, 2007 $0.095 Dec 31, 2007 $0.094 March 1, 2008 $0.089 Mosby's incremental borrowing rate is 12 percent and the present value factor for two months at a 12 percent annual rate is .9803. What was the net impact on Mosby's 2007 income as a result of this fair value hedge of a firm commitment? What was the net impact on Mosby's 2008 income as a result of this fair value hedge of a firm commitment? What was the net increase or decrease in cash flow from having purchased the foreign currency option to hedge this exposure to foreign exchange risk