On October 15, 2020, Buy Co., a Canadian company, entered a contract to purchase goods from Sell Ltd., a foreign corporation. The terms of the contract call for the goods to be delivered to Buy Co.'s Calgary location on June 30, 2021. The cost of goods is AUD $600,000, to be settled on July 31, 2021.

On October 15, 2020, Buy Co. also arranged a forward contract through its bank for AUD $600,000. The goods were delivered on time, and Buy Co. settled with Sell LTD. on July 31, 2021. Buy Co. has a May 31 year-end.

The spot and forward rates are as follows:

	Spot Rate ($CAD) 1USD = x.xx CAD	Forward Rate ($CAD) 1 USD = X. XX CAD
October 15, 2020	$1.42	$1.46
May 31, 2021	$1.44	$1.48
June 30, 2021	$1.45	$1.49
July 31, 2021	$1.50	$1.50

Required

Prepare Buy Co.'s journal entries to reflect the above, assuming that:

1. The hedge is a cash flow hedge, and
2. The hedge is a fair-value hedge.