On $12/1/33$ Apple Pie, a US company, sold inventory to Sushi, a Japanese Co$.$ Sushi agreed to pay Apple $500,000$ yen in $90$ days. On $12/1$ Apple entered into a forward contract with Acme Bank to sell $500,000$ yen to the bank in $90$ days. The exchange rates for various days for $$1$ are: Date Spot Rate Forward Rate $12/1$ $$1=4\mathrm{.}05$ yen $$1=4\mathrm{.}08$ yen $12/31($year$-$end$)$ $$1=3\mathrm{.}89$ yen $$1=4\mathrm{.}043/1($settlement$)$ $$1=3\mathrm{.}92$ yen Ignore time value of money. Make the appropriate journal entries for Apple Pie. Show the detail of the effects of this transaction on income in each year. Assume Apple Pie treated the hedge as a Cash Flow Hedge.