On November 1, 2015, Ambrose Company sold merchandise to a foreign customer for 130,000 FCUs with payment to be received on April 30, 2016. At the date of sale, Ambrose entered into a six-month forward contract to sell 130,000 LCUs. It properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply:

Date	Spot Rate	Forward Rate (to April 30, 2016)
November 1, 2015	$0.54	$0.53
December 31, 2015	0.51	0.49
April 30, 2016	0.50	N/A

Ambroses incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610.

a.

Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to 2 decimal places.)

b.	What is the impact on net income in 2015? (In case of negative impact on net income, answer should be entered with a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

c.	What is the impact on net income in 2016? (In case of negative impact on net income, answer should be entered with a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)