If Gemini has a floating rate loan and enters into a pay-fixed-and-receive-floating interest swap transaction with the same principal amount, which of the following statements is the most appropriate for Gemini?

(a) Changes in the fair value of the swap should be deferred in equity with corresponding changes recognized in the carrying amount of the loan.

(b) Changes in the fair value of the swap should be deferred in equity with corresponding changes recognized in a swap asset or swap liability.

(c) Changes in the fair value of the swap should be recognized in the income statement with corresponding changes recognized in the carrying amount of the loan.

(d) Changes in the fair value of the swap should be recognized in the income statement with corresponding changes recognized in a swap asset or swap liability.