On September $1,2018,$ Bauer Inc. has $10,000$ ounces of silver, with an average cost of $$13$ per ounce, in inventory. The spot price for silver is $$16$ per ounce. Bauer decides to retain the inventory until mid$-$January $2019,$ hoping that the price increases to $$17$ per ounce. To hedge its position, Bauer sells future contracts to sell $10,000$ ounces of silver at $$17$ per ounce on January $20,2019.$ The firm applies fair value hedge accounting. The market spot rates and future prices for silver are as follows:

$\backslash$table$[[,$Spot Price,$\backslash$table$[[$January $20],[2019],[$Price$]]],[\backslash$table$[[$September$]],,],[\backslash$table$[[1,],[2018]],$$$16,$$$17$