Im not sure if this is correct. March 1, when the spot rate is $0.35 per Norwegian krone." Derby enters into a forward contract to purchase 717,000 Norweglan kroner at a three-month forward rate of $0.40. Forward points are excluded in assessing the forward contract's effectiveness as a hedge, and are amortized to net income on a straight-line basis. At the end of three months, when the spot rate is $0.395 per Norweglan krone, Derby orders and recelves the merchandise, paying 717,000 kroner. The merchandise is sold within 30 days.Required:8-1. Prepare all journal entries for Derby Corporation related to this transaction and hedge.8-2. What amount should Derby Corporation report in the current year's net income as cost of goods sold?b. What amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss?Complete this question by entering your answers in the tabs below.Prepare all journal entries for Derby Corporation related to this transaction and hedge.Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.\table[[,No,Daste,General Journal,Debit,Credit],[b,1,0301,No Journal Entry Required,,],[,,,,,],[,2,0531,Other Comprehensive income (OCI),35,850,],[,,,Forward Contract,,35,850],[,3,0531,Cost of Goods Sold,35,850,],[,,,Other Comprehensive Income (OCI),,35,850],[/,4,0531,Foreign Currency (NOK),286,800,],[,,,Forward Contract,,286,800],[,,,Cash,,286,800],[??,5,0531,Inventory,286,800,],[,,,Foreign Curency (NOK),,286.800],[,,,,322,650,],[,6,0531,Cost of Goods Sold,,322,650],[,,,Inventory,,],[,7,0531,Accumulated Other Comprehensive Income (AOCI),3.885,],[,,,Cost of Goods Sold,,3.885]]Complete this question by entering your answers in the tabs below.What amount should Derby Corporation report in the current year's net income as cost of goods sold?Cast of goods sold q,Req A1 RWhat amount should Derby Corporation report in the current year's net income as foreign exchange gain or loss?Note: Select "No Effect" if there is no gain or loss.Foreign exchange gain