Problem 4 Darnold company imports from Dutch manufacturers. On March 1, the company received delivery of a large piece of equipment to be used in their warehouse. The cost of the equipment was 1,350,000 FC and the spot rate of the FC was $1.35, on March 1st. Darnold had placed 2 deposits, of 75,000 FC each, down for the equipment. The first deposit was placed on January 1, and the second deposit was placed on February 1. The spot rate on January 1 was $1.29 and on February 1 was $1.31. The balance of the invoice is due on June 1st. On March 15th, Darnold decides to purchase an option to buy FC on May 31st at a strike price of 1 FC equals $1.37 The hedge was designated as a fair value hedge. At the time of the purchase the out-of the money option had a value of $1,800 and a value of $1,500 at April 30th FC spot rates are as follows 15-Mar 30-Apr 31-May 1FC $1.33 $1.38 $1.40 At May 31, the option was settled and the FC was remitted to the vendor. Assuming that finandal statements are prepred for April and May, identify all relevant income statement and balance sheet accounts for the above transactions and determine the appropriate monthly balances