Recording transactions qualifying as cash flow hedges of forecasted foreign-currency denominated sales Assume our U.S.-based company's functional currency is the $US dollar and it enters into a forecasted transaction with an England-based retailer on December 1, 2018. The forecasted transaction requires our company to sell 75,000 units of an inventory item costing 10 each to the English company. Our company is contractually committed to ship the inventory (i.e., title transfers) on March 1, 2019, with payment in British pounds on the same date. Our company does recurring business with the English company, but this arrangement does not qualify as a firm commitment. Also assume, on December 1, 2018, our company enters into a contract with a foreign currency exchange broker to sell British pounds (for settlement on March 1, 2019) to mitigate the risk of exchange rate fluctuation. This derivative qualifies as a cash flow hedge. The relevant exchange rates and related balances for the period from December 1, 2018, to March 1, 2019, are as follows: Derivative-Forward Date Spot Rate Forward Rate" (SUS-1) (SUS-1) Fvb Change in FV December 1, 2018 1.31 1.36 December 31, 2018 1.40 1.43 $152,500) $(52,500) March 1, 2019 1.45 1.45 (67,500) (15,000) For settlement on March 1, 2019 b Ignore discounting in the computation of fair values. For the quarter ended December 31, 2018, what amount will our company recognize in other comprehensive income? Select one: a. The gains and losses will net to $0 in other comprehensive income b. $52,500 of gains in other comprehensive income c. $52,500 of losses in other comprehensive income d. $67,500 of gains in other comprehensive income