Part B $(10$ marks$)$Fire Protection Ltd$.$ is a fire suppression company that installs sprinkler systems in commercial buildings. It is currently working on a large project and relies completely on US suppliers for its components. The company is worried about the volatility for the CDN$/$US currency exchange rate. Fire Protection agrees to buy $$50,000$ in US currency for $$65,000$ Canadian from MBO Bank in $30$ days from now. The contract is priced so that it has a $$500$ fair value on the issue date. On the settlement date, the exchange rate is $$1\mathrm{.}25$ CDN $=$ $$1$ US$.$Instructions:a$)$ Record the entries related to this forward contract assuming that the contract is settled on a gross basis.b$)$ Record the entries related to this forward contract assuming that the contract is settled on a net basis.