Use the Following Information to Answer Bellow Questions

Multiple Choice

Use the following information to answer bellow Questions
A company has $1,000,000 in variable rate debt, with interest due on December 31 of each year. Interest is set at the Treasury bill rate plus 1.2%. The principal of the loan is due December 31, 2021. On January 1, 2020, the company enters a two-year receive variable/pay fixed interest rate swap, at a fixed rate of 2.2%. The swap is settled at the end of each year. The Treasury bill rate for 2020 is 0.8%, and it is 0.7% in 2021. The company records the swap at the expected future receipts/payments, equal to the receipt/payment for the current year, discounted at the variable rate. The swap qualifies as a cash flow hedge of the variable interest payments, and income effects of the debt and the swap are reported in interest expense.
-On January 1, 2020, the company records the swap agreement as a(n)

A) asset of $3,883.
B) asset of $3,561.
C) liability of $3,561.
D) liability of $3,883.