Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materials from a foreign supplier on December $1,2023,$ with payment of $18,000$ dinars to be made on March $1,2024.$ The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December $1,2023,$ Icebreaker enters into a forward contract to purchase $18,000$ dinars on March $1,2024.$ Relevant exchange rates for the dinar on various dates are as follows:

Required:

a$-1.$ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a forelgn currency payable, prepare journal

entrles for the Import purchase and foreign currency forward contract In U$.$S$.$ dollars.

a$\mathrm{.}2.$ What is the Impact on $2023$ net Income?

a$\mathrm{.}3.$ What is the Impact on $2024$ net Income?

a$\mathrm{.}4.$ What is the Impact on net Income over the two accounting perlods?

b$-1.$ Assuming that Icebreaker designates the forward contract as a falr value hedge of a forelgn currency payable, prepare journal

entrles for the Import purchase and foreign currency forward contract In U$.$S$.$ dollars.

b$-2.$ What is the Impact on net Income in $2023$ and In $2024?$

b$-3.$ What Is the Impact on net Income over the two accounting perlods?

Complete this question by entering your answers in the tabs below.

Req B$1$

Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for

the import purchase and foreign currency forward contract in U$.$S$.$ dollars.

Note: If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field. Do not round

intermediate calculations.

$(6)$ Record the entry to adjust the net amount recognized as

foreign exchange gain or loss to reflect the amortization

of the forward contract premium or discount.

$7$ Record the entry to revalue the foreign currency account

receivable.

$8$ Record the foreign exchange gain or loss on the forward

contract.

$9$ Record the settlement of the forward contract.

$10$ Record the entry to adjust the net amount recognized as

foreign exchange gain or loss to reflect the amortization

of the forward contract premium or discount.

$11$ Record the settlement of the forward contract.

$12$ Record the payment of dinars to the foreign supplier.

Complete this question by entering your answers in the tabs below.

Req B$1$

b$-2.$ What is the impact on net income in $2023$ and in $2024?$

$b-3.$ What is the impact on net income over the two accounting periods?

Note: For all requirements, do not round intermediate calculations. Negative amounts should be entered with a minus sign.