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Consider the following information: On December 1,2019, a U.S. firm plans to purchase a...

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Accounting

Consider the following information:
On December 1,2019, a U.S. firm plans to purchase a piece of equipment
(with an asking price of 100,000 francs) in Switzerland during January of
The transaction is probable, and the transaction is to be
denominated in euros.
On December 1,2019, the company enters into a forward contract to buy
100,000 Swiss francs for $1.01 on January 31,2020.
Spot rates and the forward rates for January 31,2020, settlement were as
follows (dollars per Swiss franc):
On February 1, the equipment was purchased for 100,000 Swiss francs.
Required:
A. Prepare all journal entries needed on December 1, December 31, January
31, and February 1 to account for the forecasted transaction, the forward
contract, and the transaction to buy the equipment.
B. When should the company reclassify any amounts reported in other
accumulated comprehensive income as a result of the cash flow hedge?
Answer B please
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