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Icebreaker Company (a U.S.based company) sells parts to a foreign customer on December 1, 2020, with payment of 28,000 dinars to be recelved on March 1, 2021. Kcebreaker enters into a forward contract on December 1, 2020, to sell 28,000 dinars on March 1, 2021 . The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows: Icebreaker must close its books and prepare financial statements at December 31. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a forelgn currency receivable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. a.2. What is the impact on 2020 net income? a-3. What is the impact on 2021 net income? a-4. What is the impact on net income over the two accounting periods? b-1. Assuming that lcebreaker designates the forward contract as a fair value hedge of a foreign currency receivable, prepare joumal entries for the sale and foreign currency forward contract in U.S. dollars. b-2. What is the impact on 2020 net income? b-3. What is the impact on 2021 net income? b-4. What is the impact on net income over the two accounting periods? Assuming that fcebreaker designates the forward contract as a cash flow hedge of a foreign currency recelvable, prepare journal entries for the sale and foreign currency forward contract in U.S. dollars. (If no entry is required for a transaction/event, seiect "No journat entry required" in the first account feld. Do not round intermediate calculations.)

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