Use the Following Information to Answer Questions

Multiple Choice

Use the following information to answer Questions.
On April 1, 2020, an enterprise fund issued $2,000,000 in variable rate debt, with interest paid on March 31 of each year, the fiscal year-end. The rate is reset annually. The variable rate for fiscal 2021 is 3.5%. On the same date, the fund entered a receive variable/pay fixed interest rate swap, where the fund pays a 3.6% fixed rate to a counterparty. By the end of fiscal 2021, the variable rate fell to 3.3% and the swap declined in value by $8,000. The swap qualifies for hedge accounting, per SGAS 53.
-How is the enterprise fund's investment in derivatives reported on its statement of net position?

A) Liability of $8,000.
B) Asset of $8,000.
C) Not reported.
D) Restricted category of net position.