On September 3, 2017, Robin Franchises, a U.S. company, sold merchandise to a franchisee in the U.K., at a price of 8,000,000, payable in three months in pounds. To hedge its exposed asset position, on September 3, 2017, Robin entered a forward contract for delivery of 8,000,000 to the broker on December 3, 2017. On December 3, 2017, Robin received payment from the franchisee, and delivered the pounds to the broker to close the forward contract. Robins accounting year ends December 31. Exchange rates ($/) are as follows:

	Spot rate	Forward rate for delivery December 3, 2017
September 3, 2017	$1.6168	$1.6155
December 3, 2017	1.6150	----

Required

a. Prepare the journal entries Robin Franchises made on September 3, 2017 and December 3, 2017.

b. Calculate the cash gain or loss realized by Robin Franchises by hedging compared with not hedging.