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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

$($$US $=1)$ Forward Ratea

$($$US $=1)$ FVb Change in FV December $1,20181\mathrm{.}311\mathrm{.}36$ December $31,20181\mathrm{.}401\mathrm{.}43$ $$(52,500)$ $$(52,500)$ March $1,20191\mathrm{.}451\mathrm{.}45(67,500)(15,000)$

a 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

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