1 Item 43 Item 43 2 points Time Remaining 2 hours 10 minutes

1

Item 43

Item 43 2 points

Time Remaining 2 hours 10 minutes 38 seconds

02:10:38

The gain or loss on the effective portion of a U.S. parent company\'s hedge of a net investment in a foreign entity should be treated as:

Multiple Choice

an adjustment to a valuation account in the asset section of its balance sheet.

other comprehensive income.

an adjustment to the retained earnings account in the stockholders\' equity section of its balance sheet.

a translation gain or loss in the computation of net income for the reporting period.

Solution

The gain or loss on the effective portion of a U.S. parent company\'s hedge of a net investment in a foreign entity should be treated as other comprehensive income.