Question
On October 20, 2020, Corporation X purchased a financial instrument that qualifies as a derivative and serves as a hedge for the risk of cash
On October 20, 2020, Corporation X purchased a financial instrument that qualifies as a derivative and serves as a hedge for the risk of cash flows. At the end of the year the instrument rose in value by $2,000. How should the Corporation X present that profit in the financial statements?
O Half as part of net income and the other half as comprehensive income
O As other comprehensive income.
O Within net income
O you should not recognize it.
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Financial And Managerial Accounting The Basis For Business Decisions
Authors: Jan Williams, Sue Haka, Mark S Bettner
13th Edition
0072942827, 978-0072942828
