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Problem 10-2 (LO 3, 6) Hedge with forward contract a commitment and subse- quent transaction. Kaiser Exporters buys used medical equipment and sells it to various foreign health care institutions. On June 15, the company committed to sell medical equipment to a foreign hospital for 800,000 FC. The equipment, with a cost of $325,000, was shipped to the customer on August 15 with terms FOB shipping point and payment duc on October 15 At the time of the commitment, Kaiser acquired a forward contract to sell 800,000 FC in 120 days. Selected spot and forward rates are as follows June 15 June 30 August 15 September 30 $0.500 $0.485 $0.480 0.475 $0.470 0.468 0.510 0.490 The relevant discount rate is 6% and changes in the value of the firm commitment are mea- sured as changes in the forward rate over time. Assume that the hedge is accounted for as a fair value hedge and that the time value of the hedge is included in the assessment of effectiveness Required Assuming that financial statements are prepared for the second and third quarters, identify all relevant income statement and balance sheet accounts for the above transactions and deter- mine the appropriate quarterly balances