On November 10, 2009, King Co. sold inventory to a customer in a foreign country. King agreed to accept local currency units (LCU) in full payment for this inventory. Payment was to be made on Feb 1, 2010. On December 1, 2009, King entered into a forward contract wherein the total payment to be received would be delivered to a currency broker in two months. Additional information is as follows: Total payment in local currency units (LCU) for the inventory: 120.000 Date Rate Description Exchange Rate per LCU Nov. 10, 2009 Spot Rate $0.28 Dec. 1, 2009 Spot Rate $0.30 2-Month Forward Rate $0.32 Dec 31, 2009 Spot Rate $0.34 1-Month Forward Rate $0.36 Feb 1, 2010 Spot Rate $0.38 The present value factor for one month based on the company's borrowing rate is 0.9901 Assume this hedge is designated as a cash flow hedge, what items relating to this transaction should the company report on its 2009 and 2010 financial statements? The balance in the forward contract account on its 2009 balance sheet should be $4,752 $4,653 $4,356 $4,338