Question
1)A corporation purchases oil futures. The company does not hold or purchase oil as an asset. If they had holding gains during the period from
1)A corporation purchases oil futures. The company does not hold or purchase oil as an asset. If they had holding gains during the period from these futures, which of the following is the correct reporting method?
a.Report gains and offsetting hedge item gains/losses as income
b.Report gains as comprehensive income
c.Do not report these unrealized holding gains
d.Report gains as current period income
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
