Question: A decrease in the intrinsic value of a fair value hedge is accounted for as a. A decrease of current earnings. b. Not recorded because

A decrease in the intrinsic value of a fair value hedge is accounted for as

a. A decrease of current earnings.

b. Not recorded because the exchange transaction has not yet occurred.

c. A decrease of other comprehensive income.

d. A liability to be offset with subsequent increases in the fair value of the hedge.

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