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Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1,2020, with...

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Accounting

Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1,2020, with payment of 10,000 dinars to be received on March 1,2021. Icebreaker enters into a forward contract on December 1,2020, to sell 10,000 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:
\table[[Date,Forward Rate,],[December 1,2020,$2.80,(to March 1,2021)],[December 31,2020,2.90,$2.875
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