Reiter Corporation $($a U$.$S$.-$ based company$)$ sold parts to an Israeli customer on December $1,$ Year $1,$ with payment of $100,000$ Israeli shekels to be received on March $31,$ Year $2.$ The following exchange rates apply:

DateSpot RateForward Rate $($to March $1,$ Year $2)$December $1,$ Year $1$$ $0\mathrm{.}24$$ $0\mathrm{.}23$December $31,$ Year $10\mathrm{.}220\mathrm{.}20$March $31,$ Year $20\mathrm{.}25$

Reiter$$s incremental borrowing rate is $12$ percent. The present value factor for three months at an annual interest rate of $12$ percent $(1$ percent per month$)$ is $0\mathrm{.}9706.$

Assuming a forward contract to sell $100,000$ Israeli shekels was entered into on December $1,$ Year $1,$ as a fair value hedge of a foreign currency receivable, what would be the net impact on net income in Year $1$ resulting from a fluctuation in the value of the shekel?

Multiple Choice

No impact on net income.

A $$58\mathrm{.}80$ decrease in net income.

A $$2,000$ decrease in income.

A $$911\mathrm{.}80$ increase in income.