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 December 31, 2021, the company records its variable rate cash payment to the holder of the loan at the variable rate, debiting interest expense. The entry to adjust interest expense to its correct amount involves a $3,000

A) credit to interest expense.
B) credit to other comprehensive income.
C) debit to loan payable.
D) debit to other comprehensive income.