Question 13The 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: an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet. other comprehensive income. a translation gain or loss in the computation of net income for the reporting period. an adjustment to a valuation account in the asset section of its balance sheet.

Answered: Question 13 The gain or loss on the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 13

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:

		an adjustment to the retained earnings account in the stockholders' equity section of its balance sheet.
		other comprehensive income.
		a translation gain or loss in the computation of net income for the reporting period.
		an adjustment to a valuation account in the asset section of its balance sheet.

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