On October 20, 2020, Corporation X purchased a financial instrument that qualifies as a derivative...
60.1K
Verified Solution
Link Copied!
Question
Accounting
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.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
