On January 1, Year 1. Superior Products Inc. (SPI) entered into a cash flow hedge transaction for expected inventory purchases. During Year 1, the company incurred a loss on the ineffective portion of the hedge of $50,000 and a gain on the effective portion of the hedge of $65,000. Assuming that all hedged inventory purchases are sold to customers by March 31, Year 2, what is the correct treatment of the inventory hedge transaction on SPI's financial statements at December 31, Year 1, the company's year- end? $15,000 net gain reported on the income statement (only) $15.000 other comprehensive Income reported on the balance sheet (only). $50,000 loss reported on the income statement (only). $50,000 loss reported on the income statement and a $65,000 other comprehensive income reported on the balance sheet. ABC Company enters into a foreign currency fair value hedge to hedge its exposure to pesos from several transactions completed in Mexico. During the year, the company had a $17,000 loss from the foreign currency fair value hedge along with a $12,000 gain on the underlying hedged currency. Assuming that the derivative transaction is deemed highly effective and that the transaction will be fully settled the following year, how would the above derivative transaction activity be recorded on ABC Company's financial statements in the current year? $5,000 net loss in current earnings. $5,000 net loss in other comprehensive income. $12,000 gain in current earnings and $17,000 loss in other comprehensive income. $17,000 loss in current earnings and $12,000 gain in current earnings