On November 1 of the current year, Dover Corp. decides to buy a machine from a European supplier for 200,000 euros in six months. At the time of the decision, the six-month forward exchange rate is 1.30, resulting in a budget of $260,000 for the purchase. Dover enters a forward contract to purchase 200,000 euros at 1.30 as a cash flow hedge to protect against changes in the exchange rate. When Dover prepares its year-end financial statements, the unrealized gains and losses in the fair value of the forward contract will be recognized

A. In current earnings.

B. In other comprehensive income.

C. As an adjustment to the payable.

D. As an adjustment to the equipment asset.