Suppose a company intends to acquire an asset in the future. The asset's forward price is $200,000. It hedges its transaction by purchasing a $205,000 forward contract. The forward contract incurs a paper loss of $15,000 throughout the hedging period. At the completion of the hedge, the forward contract has lost $20,000 in cumulative value and the asset is $20,000 less expensive. Describe the accounting entries that would be made and the impact on the firm's earnings and balance sheet. What would change if it were not an efficient hedge?