Brandlin Company of Anaheim, California, sells parts to a foreign customer on December 1, 2017, with payment of 27,000 korunas to be received on March 1, 2018. Brandlin enters into a forward contract on December 1, 2017, to sell 27,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows: Date Spot Rate Forward Rate (to March 1, 2018) December 1, 2017 $ 4.50 $ 4.575 December 31, 2017 4.60 4.700 March 1, 2018 4.75 N/A Brandlin's incremental borrowing rate is 9 percent. The present value factor for two months at an annual interest rate of 9 percent (0.75 percent per month) is 0.9852. Brandlin must close its books and prepare financial statements at December 31. a-1. Assuming that Brandlin designates the forward contract as a cash flow hedge of a foreign currency receivable and recognizes any premium or discount using the straight-line method, prepare journal entries for these transactions in U. S. dollars. a-2. What is the impact on 2017 net income