Icebreaker Company $($a U$.$S$.-$based company$)$ purchases materlals from a foreign supplier on December $1,2023,$ with payment of

$18,000$ dinars to be made on March $1,2024.$ The materlals 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 varlous dates are as follows:

Required:

a$-1.$ Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign 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 foreign 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?

Answer is complete but not entirely correct.

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

Req A$1$

Req A$.2$ to A$4$

Req B$1$

Req B$2$ to B$3$

a$-2.$ What is the impact on $2023$ net income?

a$-3.$ What is the impact on $2024$ net income?

a$-4.$ 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.