Question 4 (15 points) a Listen - Karma Inc. sells lumber to a number of clients around the world. On December 1, 2017 the company shipped some lumber to a client in the US. The selling price was established at US$600,000 with payment to be received on March 1, 2018 On December 3, 2017 the company entered into a hedge with a Canadian Bank at the 90 day forward rate of US$1 = CDN$1.275, Karma Inc. received the payment from its American client on March 1, 2018 . The company's year end is on December 31. The two-month forward rate for US dollars was CDN$1.255 on that date (Dec 31). Selected spot rates were as follows: December 1, 2017 December 3, 2017 December 31, 2017 March 1, 2018 US$1 = CDN$1.2355 US$1 = CDN$1.2355 US$1 CDN$1.2455 US$1 = CDN$1.2480 Required: Prepare all necessary journal entries on the following dates a. December 31, 2017 b. March 1, 2018