Williams, Inc., a U$.$S$.$ company, has a Japanese yen account receivable resulting from an export sale on March $1$ to

a customer in Japan. The exporter signed a forward contract on March $1$ to sell yen and designated it as a cash

flow hedge of a recognized receivable. The spot rate was $$0\mathrm{.}0094,$ and the forward rate was $$0\mathrm{.}0095.$ Which of

the following would the U$.$S$.$ exporter allocate over the life of the forward contract?

Multiple Choice

Discount as an increase in net income.

Premium as an increase in net income.

Discount as a decrease in net income.

Premium as a decrease in net income.

Both discount and premium as increases in net income