$($Question is merged into image below, please provide the cash flow and fair value hedges' journal entries.$)$

On June $1,$ Maxwell Corporation $($a U$.$S$.-$based company$)$ sold goods to a foreign customer at a price of $1,250,000$ pesos and will receive payment in three months on September $1.$ On June $1,$ Maxwell acquired an option to sell $1,250,000$ pesos in three months at a strike price of $$0\mathrm{.}092.$ The time value of the option is excluded from the assessment of hedge effectiveness, and the change in time value is recognized in net income over the life of the option. Relevant exchange rates and option premia for the peso are as follows:receivablefair

Required:

a$-1.$ Assuming that Maxwell designates the foreign currency option as a cash flow hedge of a forelgn

currency recelvable, prepare journal entries for the export sale and related hedge in U$.$S$.$ dollars

a$-2.$ What is the impact on net Income over the two accounting perlods?

b$-1.$ Assuming that Maxwell designates the foreign currency option as a falr value hedge of a foreign

currency recelvable, prepare journal entries for the export sale and related hedge in U$.$S$.$ dollars

b$-2.$ What is the Impact on net income over the two accounting periods?

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