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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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