HD Company sells goods to a Spanish customer at a price of 1 million euros. HD shipped goods to its customer on December 1, Year 1. The payment was received on March 1, Year 2. On December 1, Year 1, HD signs a contract with First National Bank to deliver 1,000,000 euros in three months in exchange for $1,485,000. The spot rate forward rate on 12/1/Year 1 was $1.600 and the forward rate on 12/31/Year 1 was $1.700. On 3/1/Year 2, the forward rate was $1.500.
HD designates the forward contract as a fair value hedge. What is the net impact on Year 1 net income?