On September $1,2023,$ Stone Company received an order to sell a machine to a customer in Australia at a price of $107,500$ Australian dollars. Stone shipped the machine and received payment on March $1,2024.$ On September $1,2023,$ Stone purchased a put option giving it the right to sell $107,500$ Australian dollars on March $1,2024$ at a price of $$87,500.$ Stone properly designated the option as a fair value hedge of the Australian dollar firm commitment. The option's time value is excluded in assessing hedge effectiveness, and the change in time value is recognized in net income over the life of the option. The option cost $$2,750$ and had a fair value of $$3,200$ on December $31,2023.$ The fair value of the firm commitment was measured by referring to changes in the spot rate $($discounting to present value is ignored$).$ The following spot exchange rates apply: DateU.S$.$ Dollar Per Australian Dollar $($AUD$)$September $1,2023$$ $0\mathrm{.}80$December $31,2023$$ $0\mathrm{.}79$March $1,2024$$ $0\mathrm{.}77$