Rozzen INC A Company has a future contract that has a derivative embedded in it....

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Accounting

Rozzen INC A Company has a future contract that has a derivative embedded in it. The included derivative would have been accounted for as a derivative if it had been on a stand-alone basis. The futures contract is revalued at market value with the changes recorded in earnings for each period. The embedded derivative is not clearly and closely related to the economic characteristics of the futures contract.

Explain how Rozzen INC should report this embedded derivative.

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