Consider the following information:

On December $1,2019,$ a U$.$S$.$ firm plans to purchase a piece of equipment

$($with an asking price of $100,000$ francs$)$ in Switzerland during January of

The transaction is probable, and the transaction is to be

denominated in euros.

On December $1,2019,$ the company enters into a forward contract to buy

$100,000$ Swiss francs for $$1\mathrm{.}01$ on January $31,2020.$

Spot rates and the forward rates for January $31,2020,$ settlement were as

follows $($dollars per Swiss franc$)$:

On February $1,$ the equipment was purchased for $100,000$ Swiss francs.

Required:

A$.$ Prepare all journal entries needed on December $1,$ December $31,$ January

$31,$ and February $1$ to account for the forecasted transaction, the forward

contract, and the transaction to buy the equipment.

B$.$ When should the company reclassify any amounts reported in other

accumulated comprehensive income as a result of the cash flow hedge?

Answer B please