Pacifico Company, a U.S.-based Importer of beer and wine, purchased 2,400 cases of Oktoberfest-style beer from a German supplier for 672,000 euros. Relevant U.S. dollar exchange rates for the euro are as follows: The company closes its books and prepares third-quarter financlal statements on September 30. a. Assume that the beer arrlved on August 15 , and the company made payment on October 15 . There was no attempt to hedge the exposure to forelgn exchange risk. Prepare Journal entrles to account for this Import purchase. b. Assume that the beer arrlved on August 15, and the company made payment on October 15. On August 15, the company entered Into a two-month forward contract to purchase 672,000 euros. The company designated the forward contract as a cash flow hedge of a forelgn currency payable. Forward points are excluded In assessing hedge effectlveness and amortized to net Income using a straight-line method on a monthly basis. Prepare journal entrles to account for the Import purchase and foreign currency forward contract. c. Assume that the company ordered the beer on August 15. The beer arrlved and the company pald for It on October 15. On August 15 , the company entered Into a two-month forward contract to purchase 672,000 euros. The company designated the forward contract as a falr value hedge of a forelgn currency firm commitment. The falr value of the firm commitment Is measured by referring to changes in the forward rate. Forward points are not excluded In assessing hedge effectlveness. Prepare journal entrles to account for the forelgn currency forward contract, forelgn currency firm commitment, and Import purchase. d. Assume that the company ordered the beer on August 15 . The beer arrlved and the company pald for It on October 15. On August 15 , the company purchased a two-month call option on 672,000 euros. The company designated the option as a falr value hedge of a forelgn currency firm commltment. The falr value of the firm commitment is measured by referring to changes in the spot rate. The tIme value of the option Is excluded from the assessment of hedge effectlveness, and the change in time value is recognized In net Income over the life of the option. Prepare journal entrles to account for the forelgn currency option, forelgn currency firm commitment, and Import purchase. e. Assume that, on August 15, the company forecasted the purchase of beer on October 15. On August 15, the company acquired a two-month call optlon on 672,000 euros. The company designated the option as a cash value hedge of a forecasted forelgn currency transaction. The time value of the option Is excluded from the assessment of hedge effectlveness, and the change in time value Is recognized in net Income over the life of the option. Prepare journal entrles to account for the forelgn currency option and Import purchase