PLS DON'T USE AI, no chat gpt, please! E16.2 (LO 1) (Derivative Transaction) On January 1, 2020, Roper Inc. agrees to buy 3 kg of gold at $40,000 per kilogram from Golden Corp on April 1, 2020, but does not intend to take delivery of the gold. On the day that the contract was entered into, the fair value of this forward contract was zero. The fair value of the forward subsequently fluctuated as follows:

Date		Fair Value of Forward Contract
January 20, 2020		$450
February 6, 2020		125
February 28, 2020		360
March 14, 2020		700

On the settlement date, the spot price of gold is $41,000 per kilogram. Assume that Roper complies with IFRS.

Instructions

a. Prepare the journal entries for the day the forward contract was signed.

b. Prepare the journal entries to recognize the changes in the fair value of the forward contract.

c. Prepare the journal entries that would be required if Roper settled the contract on a net basis on April 1, 2020.