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Required: What does the shortcut method allow Avalanche to assume? How does this assumption affect the application of hedge accounting? Calculate the net cash settlement

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What does the shortcut method allow Avalanche to assume? How does this assumption affect the application of hedge accounting?
Calculate the net cash settlement at each settlement date during 2024 and 2025.
Prepare the journal entries during 2024 to record the issuance of the note, interest, net cash settlement for the interest rate swap, and necessary adjustments for changes in fair value under the shortcut method.
Prepare the journal entries during 2025 to record interest, net cash settlement for the interest rate swap, necessary adjustments for changes in fair value, and repayment of the debt.
Rollforward both the swap account and the notes payable account at each settlement/interest payment date.
Calculate the net effect on earnings of the hedging arrangement for the six-month periods ending June 30 and December 31,2024, and June 30 and December 31,2025.
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