a Derived from an option pricing model such as the Black$-$Scholes model

b $(600,000$$$1\mathrm{.}30$:$1)-(600,000$$$1\mathrm{.}25$:$1)$

c $(600,000$$$1\mathrm{.}30$:$1)-(600,000$$$1\mathrm{.}21$:$1)$

d Fair value $-$ intrinsic value $($i$.$e$.,$ equals the residual fair value derived from all sources except for intrinsic value $[$e$.$g$.,$ time value$])$

a$.$ Prepare the journal entries to record all the adjustments required for the forecasted sale and option contract on January $5,2022,$ March $31,2022,$ and June $30,2022$

Note: If no journal entry is required, select No entry $-$ debit and No entry $-$ credit as your Account answers and leave the Debit and Credit amounts blank $($zero$).$

Hedged Transaction

b$.$ What amount of sales was recognized in the quarter ending March $31,2022?$ What amount of sales was recognized in the quarter ending June $30,2022?$

Note: Use negative signs with your answers, when appropriate.

CF Hedge: Entries assuming excluded option value amortized through income