Q1 On February 1, 2017, Linber Company forecasted the purchase of component parts on May 1, 2017, at a price of 100,000 euros. On that date, Linber entered into a forward contract to purchase 100,000 euros on May 1, 2017. It designated the forward contract as a cash flow hedge of the forecasted transaction. The spot rate for euros on February 1, 2017, was $1 per euro. On May 1, 2017, the forward contract was settled, and the component parts were received and paid for. The parts were consumed in the second quarter of 2017. Linber's financial statements reported the following amounts related to this cash flow hedge (credit balances in parentheses): Income Statement QI 2017Q2 2017 Premium expense 4,000 $2,000 COGS 103,000 Adjustment to net income 3,000 5/1/17 Balance Sheet 3/31/17 Forward Contract (Liability)S(1,980) S-O- AOC (credit) (2.020) Change in cash (106,000) *$2,000